Although the Shanghai Gold Exchange has its own gold quotation system, the most basic pricing basis still comes from the price determined by the London International Gold Futures Exchange. In fact, the price of Shanghai gold is lower than London gold in some periods. The most important factor affecting price fluctuations is supply and demand. China is one of the major gold consuming countries, and its use focuses on gold for jewelry. Especially during weddings and festivals, the consumption of gold is relatively high. Although gold has both the functions of collection, decoration and investment, there is less gold used for domestic investment. This has resulted in gold 'retail investors' not having strong bargaining power when purchasing gold jewelry, and gold prices have seen more premiums. This will also drive the spot gold price on the exchange to rise to a certain extent.