Four basic factors affecting the price of gold are introduced. As we all know, the fluctuation of gold price is influenced by many factors. In order to help investors better grasp the trend of gold price and profit from it, the author will introduce four basic factors that affect gold price.

1, consumption factor

If people's purchasing power increases, their desire for gold and silver jewelry will increase, which will stimulate the rise of gold prices. On the contrary, if people's income level drops, their purchases will naturally decrease, their demand will weaken, and the price of gold will also be affected and reduced.

2. Economic factors

With the steady development of the world economy, the price of gold is less affected. When economic crisis and inflation occur, people lose confidence in credit currency. Gold has the function of hedging and resisting inflation risk, and investors choose to buy gold to push up the price. In addition, the rising rate of prices in major western countries, especially the United States, is most likely to affect the change of gold prices.