There are many factors affecting the price of gold. Investors can pay attention to the following fundamental information to predict the future trend of the price of gold:
1. Balance of supply and demand Like other commodities, the price of gold is affected by the relationship between supply and demand. If supply exceeds demand, the price will fall. If the supply exceeds the demand, the price will go up.
2. The exchange rate of major currencies in the world is one of the important factors that affect the fluctuation of gold price. Since gold is priced in dollars, generally speaking, the appreciation of the dollar will push down the price of gold, and the depreciation of the dollar will push up the price of gold. In addition, a strong dollar generally means that the domestic economic situation in the United States is good, domestic stocks and bonds in the United States will be sought after by investors, and the function of gold as a means of value storage will be weakened; The decline in the exchange rate of the US dollar is often related to inflation and the stock market downturn. The value-preserving function of gold is once again reflected, so the price of gold will rise.
3. Oil price Since the world's major oil spot and futures are priced in US dollars, the fluctuation of oil price reflects the relationship between world oil supply and demand on the one hand; On the other hand, it also reflects the changes in the world inflation level, so oil prices and gold prices indirectly affect each other, and most of them are positively related.
4. Geopolitics Major international politics and war time will affect the price of gold. The government spends a lot of money on war or maintaining domestic economic growth. Political turmoil has caused a large number of investors to turn to gold preservation investment, which will expand the demand for gold and stimulate the price of gold to rise.
5. Other factors In addition to the above factors, the intervention activities of international financial institutions and the policies and regulations of local and regional central financial institutions will also have a significant impact on the trend of world gold prices.
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