Does gold go up and stocks go down?
The rise and fall of gold prices will not directly affect the rise and fall of the stock market.
Although some people speculate that the rise of gold will lead to the decline of stocks in theory, this is to regard gold as a safe-haven asset of the whole society, and use the rise and fall of gold price to reflect the mentality of investors, and then judge that when the price of gold rises, it means that social investment tends to be conservative. The conservatism of investment is reflected in the stock market, which is manifested in the reduction of stock trading volume and the decline of stock price.
But in fact, the rise and fall of stock prices are determined by many factors in the whole market. In other words, the investor's mentality only accounts for one of them, such as the market environment, the relationship between supply and demand, the performance of the issuing company, and the expected investment trend. Will affect the stock market, which also makes the influence of the single factor of gold rise and fall in front of the whole stock market not obvious or even negligible.
What sector is gold rising?
Although the rise of gold price will not affect the whole stock market, it will still have a certain impact on industries closely related to gold.
When gold rises, gold concept stocks generally rise, including gold mining, gold processing and gold trading. Mining means that the company's business is mainly gold mining, such as Shandong gold; The processing business mainly assigns values to gold processing, such as Chow Tai Fook; As for trading desks whose business scope includes spot or futures trading of gold, they mostly refer to large financial institutions.