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Why is gold so weak when the foreign exchange trend is quite good recently? Gold fell sharply last week.
Economic growth increases personal income and purchasing power, usually accompanied by rising prices and inflation, which contributes to the rise of gold prices. In the past, we mainly observed the economic data of major industrial countries, but recently, the purchasing power of some developing countries, such as China, Indian and Southeast Asia, has greatly increased and become an important part of gold demand. What are the main factors that affect the trend of gold price?

1. Supply and demand

A. Supply: There are three main sources of gold supply: mining, gold scrap recovery and sale.

B. demand: manufacturing demand and investment demand.

2. Economic situation

Economic growth increases personal income and purchasing power, usually accompanied by rising prices and inflation, which contributes to the rise of gold prices. In the past, we mainly observed the economic data of major industrial countries, but recently, the purchasing power of some developing countries, such as China, Indian and Southeast Asia, has greatly increased and become an important part of gold demand.

3. Inflation: As inflation intensifies, the price of gold tends to rise.

4. Interest rate trend: the interest rate trend affects inflation, and the lower interest rate leads to increased inflation, which in turn pushes up the price of gold.

5. Dollar: Because the dollar plays an important role in the international financial system, the strength of the dollar is not conducive to the rise of gold prices, and vice versa.

6. Crude oil: Since crude oil is an indispensable raw material for human beings, the rise in oil prices is often a precursor to higher inflation. The prices of natural gold and crude oil have the same trend. As the price of crude oil rises, so does the price of gold. or vice versa, Dallas to the auditorium

7. Political factors: War and political turmoil in some countries will also increase the price of gold, especially in South Africa and the Middle East. In recent years, terrorist activities have also become the main factor affecting the price of gold.

8. Other precious metals: The price of gold has a considerable relationship with other precious metals, among which the trend of silver has the greatest influence on the price of gold, and the price of gold and silver is an important reference index.

9. Trend of other investment tools: The trend of other investment tools, especially the stock market and bond market, is unfavorable to the price of gold.

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