Dollar index

Gold and the dollar are negatively correlated most of the time, because both are important reserve assets of major central banks, and they can be substituted for each other. Therefore, when the dollar index is firm, it weakens the position of gold as a reserve asset and a value-preserving function to a certain extent, and gold tends to fall; On the other hand, because the world gold market is generally priced in US dollars, the depreciation of the US dollar will inevitably lead to an increase in the price of gold.

World financial crisis

When the financial system is unstable, especially when the financial crisis has a great impact and a wide range, a large number of bank runs or bankruptcies may occur. At this time, the demand for gold will increase, leading to an increase in the price of gold, which is also the best embodiment of the safe-haven function of gold.

geopolitics

If the political situation is tense and the war is overcast, a large number of investors buy gold for safety and push up the price of gold. For example, 199 19 Before the disintegration of the Soviet Union in August, the price of gold soared within an hour 10 USD/oz; Another example is the Gulf War of 1992. The price of gold rose to 400 dollars, but after the war situation was controlled, the price of gold weakened, which shows that geopolitics has a great influence on the price of gold.

Consumer demand

The consumption factor depends on the quality of the economy. When the economy is good, people's income increases, their desire for consumption increases, and gold and silver jewelry becomes the object of consumers' purchase. The increase in demand stimulates the price of gold to rise. On the contrary, if the economy is not good, consumers' desire to buy will decline, and the price of gold will soften due to the decline in demand. Investment demand Because of the investment value of gold itself, when the above factors are favorable to gold, investors will enter the market one after another, and gold is driven by demand factors, making the price of gold popular.

It is precisely because of the above factors that the price of gold often fluctuates greatly, so it is very important for investors to take risk control measures when they participate in trading. But in contrast, the risk of gold investment is still very small. After all, gold is recognized as a hard currency all over the world, and its value is real.