Although the Shanghai Gold Exchange has its own gold quotation system, the most basic pricing basis comes from the price determined by the London International Gold Futures Exchange. In fact, the price of Shanghai gold is lower than that of London gold in some periods. The most important factors affecting price fluctuation are supply and demand. China is one of the most important gold consuming countries, and its use focuses on jewelry gold, especially in weddings or festivals, where the consumption of gold is relatively high. Although gold has the functions of collection, decoration and investment, there is less gold invested in China. As a result, the bargaining power of gold' retail investors' is weak when buying gold jewelry, and the price of gold has increased. This will also drive the spot gold price of the exchange to a certain extent.