Since the outbreak of the epidemic in Europe and America in March this year, the price of gold has been rising steadily, starting from more than $ 1700 and reaching more than $2,000. As can be seen from the above figure, before the outbreak, Polygonatum sibiricum consolidated between 1.700 USD and 1.800 USD for nearly two months, exceeding 65438.
After reaching a high of 2000 points, there was another wave of decline. At present, the price of gold is around 1860.
2. The main driving factors of gold price rise: 1. When the epidemic broke out in Europe and America, gold became a safe-haven asset.
Whenever there is economic turmoil caused by unexpected events, gold, as the best hedging tool at present, will usher in an upward trend.
The epidemic in America is out of control. Although it has been forced to return to work, it seems that this destruction of the economic cycle and the blow to future economic confidence will greatly reduce the role of various economic assistance actions in the United States, employment and consumption will show a weak trend for a period of time, and inflation will continue to deteriorate.
In this case, the strength of the US dollar was suspected, and it lost its hedging function and demand, and turned to seek the hedging of gold. Therefore, the demand for gold has increased, pushing up the price of gold.
The dollar weakened and gold strengthened.
2. The central bank releases water with sufficient liquidity.
The European and American central banks, represented by the Federal Reserve, have successively implemented several rounds of economic rescue policies and monetary easing policies.
Since the end of March, the Federal Reserve has even started to implement the quota-free quantitative easing policy. In just over a month, the market seems to have injected $2 trillion in liquidity.
The European Central Bank also followed the pace of the Federal Reserve and continued to implement the low interest rate policy.
Liquidity in the market will choose some investment channels in order to preserve its value, which is why gold and US stocks are hitting new highs this year, although the US epidemic is out of control.
3. Geopolitical tension.
Under the epidemic, there is an increasingly tense geopolitical situation. From Iran at the beginning of the year to Venezuela and then to East Asia, the situation is getting more and more tense. UN Secretary-General Guterres said recently that geopolitical tensions are at "the highest level in this century".
Gold is the so-called world hard currency, which is easy to carry, realize and pay. It has always been the best choice in troubled times, so there is a saying that troubled times buy gold.
Geopolitical tension is at "the highest level in this century"
4. Speculative sentiment.
At present, gold is not only the existence of value preservation, but also an important investment product in the international investment market, and there are many speculative funds in it to carry out price difference operation.
When there is an obvious upward trend of gold, it will attract many speculators to buy, thus further pushing up the price of gold.
Summary: There is no single ups and downs cycle for any kind of investment. The future trend of gold depends on the control of epidemic situation in Europe and America, the adjustment of economic policies and the relaxation of geopolitics.