LV.2?2019-09-26

Gold has three major attributes: commodity attributes, currency attributes and investment attributes.

1. The commodity attributes of gold are mainly related to jewelry and industrial gold. The trend of gold is generally relatively smooth under the guidance of this attribute. It lacks major investment opportunities, has low investment risks and small returns.

2. The investment attributes of gold are mainly related to hot money seeking short-term profits. Money supply and interest rate levels are closely related to the manifestation of this attribute. Dominated by this attribute, gold has greater short-term fluctuations, greater risks, and greater returns.

3. The monetary attributes of gold are mainly related to the stability of geopolitics and economic growth. This kind of market generally has amazing performance in the medium and long term. It is the key to the formation of the resumption of the bull market, and it also fluctuates from time to time in the short term. If there is a surge in the market, the risks are greater, but the benefits are the greatest.

These three attributes of gold determine the strength and amplitude of gold’s trend. Generally speaking, gold as a commodity cannot bring about huge fluctuations in gold prices, and even when gold is only used as an investment product, it cannot Bringing violent trends, only when the monetary properties of gold play a leading role will gold prices experience big trends.

Find out