Analysis: The oil pricing mechanism boosts the US dollar and suppresses gold's upward momentum

Jinse Finance reported that Juan Perez from Monex USA wrote that the surge in oil prices triggered by the Middle East conflict is a key driver behind the recent rise of the US dollar. He stated that since most crude oil trades are priced in US dollars, shipping difficulties in the Strait of Hormuz will lead to higher oil prices, forcing the market to increase dollar borrowing, which in turn strengthens the dollar and suppresses the rise of gold. The market is concerned that this conflict may last longer than previously expected. Perez pointed out that emerging market currencies, which performed well until last week, are now weakening against the US dollar.