First of all, loose monetary policy, such as the central bank loosening monetary policy and injecting a large amount of money into the market, is so large that there will be a certain degree of excess liquidity in the market at this time, which leads to what western economics calls "too much money pursuing too few products", which leads to rising prices, and the same amount of money can buy fewer goods than before the implementation of loose monetary policy. That is to say, the actual purchasing power has declined. In order to prevent the devaluation of the national currency, residents with large deposits in banks will exchange their national currency for gold to preserve their value. There is a great demand for gold. Because the reserves of gold are limited (that is, the supply is relatively stable), the price of gold will naturally rise.
Secondly, the influence of tight monetary policy is contrary to the above principles, so push it yourself!