What exactly is gold? I think gold is an international currency, and any dollar, pound and so on are paper money. Next, paper money is paper, which is cheap, but worthless, because paper money is supported by national credit, and national credit needs gold support, so gold is the real currency, which may subvert your three views. All right, let's keep looking down.
Gold rose sharply. I think the reason for the sharp rise in gold is mainly because a new cycle of interest rate cuts has begun. I think more and more countries will implement quantitative easing in the future, and a new cycle of the world economy will begin. A new growth cycle of the world economy is likely to begin.
I think it is wrong to say that gold is money. World currency is not something that any country can produce at will. How could it collapse? This thing won't crash. Of course, this is the law that leads to the world economy. I need to find data to prove it. I'll talk about it in detail later.
Secondly, let's talk about the main price influencing factors of gold.
Because gold has both commodity, monetary and financial attributes, and it is also a symbol of assets, the price of gold is not only affected by the relationship between supply and demand of commodities, but also very sensitive to economic and political changes. The oil crisis and financial crisis will lead to a sharp rise and fall in the price of gold. In addition, investment demand also has a significant impact on the change of gold price.
The relationship between supply and demand in the world gold market determines the long-term price trend.
Gold has the function of world reserve, and the change of world official gold reserve will directly affect the change of world gold price.
What are the other main factors that affect gold?
(1) The exchange rate of the world's major currencies, especially the exchange rate of the US dollar, is one of the important factors that affect the fluctuation of gold prices.
(2) There is a long-term positive correlation between the world gold price and the crude oil futures price. Oil prices will also affect the price of gold.
(3) Major political and war events in the world mainly affect the price of gold through risk aversion.
(4) Changes in positions of gold ETFs and related products, such as palladium.
(5) The policies and regulations of local and regional central financial institutions will also have a significant impact on the trend of world gold prices.
Mainly the interest rate changes of the Federal Reserve. Because the international gold price is mainly the price of American gold futures, it affects Shanghai gold.
To sum up, regarding the recent strength of international gold price, I think gold will have a bull market in golden decade. A real value discovery is that through the trend of gold, as a world currency, gold has been recognized by people all over the world again. It can be said that the real gold price will refresh your three views.