Gold is denominated in dollars. The dollar appreciated, the purchasing power increased, and the price of gold fell. This is a big trend, as can be seen from the trend charts of gold and dollar indices in recent years. Short-term waves will not affect the general direction. The price of gold is not only affected by the dollar, but also by other factors, so it is common to have linkage in the short term.

The decline in the US stock market has an important impact on the price of gold. The rise and fall of financial bonds have an important impact on the trend of gold futures. The inflow of capital brought by the stock market decline has given an important impetus to the short-term rise of gold, but the long-term trend of gold will be affected by politics, economy and culture, and gold and universal equivalent will fluctuate accordingly with market fluctuations.

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Bad news often leads to the overall decline of the stock market, and constant bad news will lead to the continuous decline of stock market prices, forming a bear market. The operating performance of listed companies has deteriorated, banks have tightened, bank interest rates have increased, economic recession, inflation, natural and man-made disasters, and other unfavorable news that has led to a decline in stock prices.

Factors and news that are beneficial to bears and can lead to a decline in stock prices. For example, on 20 10/0,65438+10, 12, the central bank announced that it would raise the RMB deposit reserve ratio of deposit-taking financial institutions by 0.5 percentage points, resulting in a 2.8% drop in the Shanghai Composite Index and a 2.97% drop in the Shenzhen Component Index on 13. Deposit reserve refers to the deposit prepared by financial institutions in the central bank to ensure the needs of customers to withdraw deposits and settle funds. The ratio of deposit reserve required by the central bank to total deposits is the deposit reserve ratio.

Baidu Encyclopedia-Bad Stock Market