First of all, we see that most gold prices are denominated in dollars. This gold price is partly due to the strength of the US dollar and partly due to the market supply and demand of gold as a commodity itself.

Second, political turmoil.

Political events may also have a great impact on the price of gold. For example, if there is a conflict in the Middle East, people may worry about the security of the country's bonds or currencies. In order to guard against risks, investors may withdraw their funds to buy gold. The prices of oil and other commodities may also be affected, and the collateral effect of commodity prices may spread to the gold market, pushing the price of gold to rise or fall with the trend of oil prices.

Third, the world financial crisis.

When the financial system of the United States and other western countries is unstable, world funds will be invested in gold, and the demand for gold will increase, and the gold market will rise. At this time, gold played the role of a financial refuge. Only when the financial system is stable, investors' confidence in gold will be greatly reduced, and selling gold will lead to a decline in the price of gold.

Fourth, the relationship between supply and demand of gold.

The price of gold is based on supply and demand. If the output of gold increases significantly, the price of gold may be affected and fall back. However, if the output stops increasing due to the long-term strike of miners, the price of gold will usually appreciate when the supply exceeds the demand.