1, dollar trend
The mainstream trading market of gold is denominated in US dollars, and the trend of the US dollar is one of the important factors affecting the fluctuation of gold prices. Usually, the strength of the dollar is negatively correlated with the weakness of gold.
2. Political situation
Gold is one of the best means of hedging, and a shot perfectly explains the safe-haven value of gold. Any war or political turmoil will often push up the price of gold, and unexpected events will often cause the price of gold to soar in a short period of time, such as the Kosovo war and the disintegration of Yugoslavia, which will cause the price of gold futures to rise sharply.
3. Inflation
As the only non-credit currency in the world, gold is different from paper money, deposits and other currencies, and has extremely high value. Unlike other currencies, which are only representatives of value, its own value can be ignored. In extreme cases, money will be equivalent to paper, but gold will never lose its value as a precious metal.
4. Supply and demand
Any commodity will be affected by the relationship between supply and demand, and so will gold. In terms of use, gold is not only hard currency, but also an important industrial raw material and the first jewelry. For example, during the Spring Festival, consumers' demand for gold jewelry increased, which effectively stimulated the demand for gold, resulting in an imbalance between supply and demand, and the spot price of gold rose, which would eventually be transmitted to the gold futures price.