Western economics under the market anomaly: the dollar, gold, commodities all rise

Recently, a number of media articles, commodity markets increased volatility, crude oil, gold, copper and other major varieties of futures prices continued to rise, gold reached a record high, the New York Mercantile Exchange June settlement of gold futures contract closed at $2349.1 / ounce, up $40.6 or 1.76% on the day. Spot gold in London closed at $2,329.57 an ounce, up 1.77 percent, while the dollar index has risen nearly 3 percent this year.

In view of the above, there is a remarkable phenomenon in the global economy in 2024: the US dollar index, gold prices and oil prices rose simultaneously, which broke the traditional market law and caused widespread concern. Why is this happening? What's the mystery behind it?

For a long time, Western economics and market theory have provided the framework for people to understand and predict market trends. However, in the face of the current subversive phenomenon, people seem to be bound by traditional thinking models and find it difficult to find reasonable explanations. This makes people wonder whether people's over-reliance on Western economics and market theory has led to people's rigid thinking in the face of new market phenomena.

The interaction between the US dollar, gold and oil, as important indicators of the global economy, has always attracted much attention. Traditional theory holds that there is a negative correlation between the dollar and gold and oil. However, the current synchronized rally has clearly broken that rule. So what are the reasons behind it?

First, attention needs to be paid to the boost to commodity prices from the global economic recovery. Prices for commodities ranging from copper to oil and gasoline to gold and silver are rising, reflecting the strength of the global economic recovery. The fact that precious metals and commodities have been able to maintain their upward momentum despite the continued strength of the dollar suggests that the US government has created an illusion of optimism about the economic outlook.

Secondly, the logic of the rise of gold and crude oil is anti-inflation and risk aversion. The dollar rose on the strength of the US non-farm data, which exceeded expectations, which should be negative for commodities, but gold fell only a short time after the data was released, and then quickly pulled up. Analysts believe that the trend of gold has shattered the non-farm data of the United States, which is the distrust of the dollar, the distrust of the United States data, and the fraud has no bottom line.

However, in exploring this phenomenon, one cannot ignore the dual dilemmas of high debt and high inflation that the United States faces in monetary and economic management. In order to maintain the hegemony of the US dollar and the credit of the US debt, the United States has taken a series of measures to intervene in the market trend. However, this approach may only be a temporary relief and could increase market volatility in the long run.

Understanding the logic behind this phenomenon is critical to investment decisions, risk management, and future planning. In the face of the current complex and changing economic situation, people need to maintain a clear head and independent thinking ability to cope with various risks and challenges that may arise.

In short, the rise in the dollar, gold, and commodities is not an accident; it reflects the complexity and uncertainty of the current global economy. People need to pay close attention to market dynamics and strengthen risk awareness to cope with the various changes that may occur. At the same time, people should also keep an open mind and critical thinking, and constantly learn and explore new market laws to guide people's decisions and actions.