Financial encyclopedia

Gold, US stocks, US dollar, breaking the law? !

The general law of the market is that stocks, the dollar and gold cannot rise or fall at the same time

Us stocks strengthened and the dollar weakened
The dollar strengthened ️ gold prices fell
The dollar fell as gold prices strengthened

But stocks, gold and the dollar are all strong at the same time
The Dow is nearing 40,000, up three times from 13,000 12 years ago
Gold hit a record high of 2,300, up more than 40% from around $1,700 12 years ago
The dollar index is near 105 versus around 83 in 12 years, up about 25 percent over that period

It is true that the chances of all three rising together are small, but it is also possible that the important point is that the market is not only the U.S. stock, gold and the dollar options

Reasons for the strength of US stocks
That compares with the outlook for stock markets in other countries
Add to that a positive outlook for US corporate earnings; Revolutionary technologies are born, such as AI, and the Federal Reserve will begin the pace of interest rate cuts

Reasons for the strong dollar
Projected by weakness in other major currencies
Both the dollar and gold are seen as safe havens by the market, and money flows into the dollar and gold, respectively, when the economy is worried and the stock market is falling

Reasons for gold strength
Even if the strong dollar is not good for gold prices, the rising gold price will suppress the dollar, but the actual situation is that the rotation of rising ️ makes both of them maintain strength

The law that gold stock exchange cannot rise at the same time is just a blind spot in the market, and the key is that funds can flow into these three assets at the same time.