Assuming that the economy is booming and people live a carefree life, people's desire for investment will naturally increase, people's ability to buy gold for preservation or decoration will greatly increase, and gold futures prices will be supported to a certain extent. Another assumption is that when people live in poverty and the economy is in recession, people can't even meet the basic guarantee of food and clothing, so how can they be interested in the information investment of Yellow River Bank? The price of gold is bound to fall. Therefore, the economic situation is also a factor that constitutes the fluctuation of gold futures prices.
2. Inflation
The purchasing power of a country's currency is determined according to the price index. When the price of a country is stable, the purchasing power of its currency is more stable. If the price index of the United States and major regions in the world remains stable, the cash held will not depreciate and there will be interest income, so inflation is another factor that constitutes the fluctuation of gold futures prices.
3. Local interest rate
Interest rate is closely related to the price of gold futures. If the domestic interest rate is high, it is necessary to consider whether it is worthwhile to lose interest income to buy gold. For example, if the interest rate in the United States rises, the dollar will be absorbed in large quantities and the price of gold will be frustrated. Investing in gold will not earn interest, and the profit of its investment depends entirely on the price increase. When the interest rate rises, it will be more attractive to charge interest, and the investment value of interest-free gold will decline; When interest rates are low, it will be beneficial to invest in gold.
4. Gold supply and demand relationship
Among the factors that determine the success or failure of gold trading, the key is whether the price trend of gold can be correctly analyzed and judged. The application of new gold mining technology and the discovery of new mines have increased the supply of gold, which will of course make the price of gold fall. The price of gold is based on supply and demand. If the output of gold increases significantly, the price of gold will be affected and fall back. However, if the output stops increasing due to the long-term strike of miners, the price of gold will appreciate in the case of short supply.
5, the dollar trend
When the dollar weakens in the foreign exchange market, the price of gold will strengthen; With the strong trend of the US dollar, people who invest in the US dollar have a great chance to appreciate, so people will naturally chase the US dollar. Although gold itself is not legal tender, it still has its value and will not depreciate into scrap iron.
Summary: The five factors that affect the price of gold futures are economic situation, inflation, local interest rate, gold supply and demand and the trend of US dollar.