Countries all over the world keep printing a lot of money, but the price of gold has not increased much because gold has two major attributes. One is hedging and the other is preserving value. When these two items are missing, the upward momentum of gold will be weak. The most important point is that the return on investment in gold is low, attracting fewer people and also lacking upward momentum.

market price:

market prices include spot and futures prices. These two prices are both related and different. These two kinds of prices are restricted and interfered by various factors such as supply and demand, which change greatly, and the price determination mechanism is very complicated. Importantly, spot prices and futures prices are affected by similar factors, so the direction and range of change are basically the same.

However, due to the convergence of the market trend, the basis of gold (that is, the difference between the spot price of gold and the futures price) will decrease with the approach of the futures delivery period. By the delivery period, the futures price and the spot price of the transaction are roughly equal. Theoretically, the futures price should stably reflect the spot price plus the holding cost of a specific delivery period.

Therefore, the futures price of gold should be higher than the spot price, and the basis is negative. However, the factors that determine the spot price and futures price are complicated, such as: the short-term and long-term supply of gold, including the annual output of gold, the selling of gold reserves by central banks, etc. The market demand of gold includes the change of actual demand of gold (jewelry industry, industry, etc.), gold recovery and reuse, etc.

The stability of the world and other countries' political situation, inflation rate, interest rate and some unexpected events are all important factors that affect investors' psychology, and then affect the trend of gold prices. Speculators make use of the fluctuation of gold prices and unexpected events to hype up, and all kinds of hedge funds enter the market to make waves, artificially creating the illusion of supply and demand.

all this will make the supply and demand of gold in the world gold market unbalanced, and the relationship between spot and futures prices will be distorted. At this time, because the supply of gold is in short supply, the cost of holding futures cannot be compensated, and even the basis is positive, making the spot price higher than the futures price.