International political situation
Major international political and war events will affect the price of gold futures. The government spent a lot of money for war or maintaining the stable growth of domestic economy, the political situation was turbulent, a large number of investors turned to gold investment, and the demand for gold expanded, which stimulated the price of gold to rise.
Exchange rate of major currencies
The exchange rate of US dollar is one of the important factors that affect the fluctuation of gold price. Since the gold market price is priced in US dollars, the appreciation of the US dollar will push the price of gold down, while the depreciation of the US dollar will push the price of gold up. A stronger dollar will have a significant impact on the price of gold futures.
Gold supply and demand relationship
For a long time, in terms of commodity attributes, the influence of gold production and consumption on the price of gold is limited. However, in terms of financial attributes, due to factors such as global excess liquidity in recent years, the rapid growth of gold investment demand has a greater impact on gold futures prices.
Oil supply and demand relationship
Since the prices of the world's major oil spot and futures markets are priced in US dollars, the fluctuation of oil prices reflects the relationship between world oil supply and demand on the one hand, and the changes of US dollar exchange rate and world inflation on the other. Oil price and gold price indirectly influence each other. Crude oil futures and gold futures prices are positively correlated most of the time.
Other factors
In addition to the above factors affecting the price of gold, the level of positions held by gold exchange traded funds (ETFs) and other factors will also have a certain impact on the trend of international gold prices.
Author | Han Zizhu
Edit | Fu Ying
Source | unicornfinance
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