The exchange rate of US dollar is also one of the important factors that affect the fluctuation of gold price. Generally speaking, in the gold market, there is a rule that the dollar rises and the price of gold falls, while the dollar falls and the price of gold rises. A strong dollar generally means that the domestic economic situation in the United States is good, domestic stocks and bonds in the United States will be sought after by investors, and the function of gold as a means of value storage will be weakened; The decline in the exchange rate of the US dollar is often related to inflation and the stock market downturn, and the value-preserving function of gold is once again reflected. This is because the depreciation of the dollar is often related to inflation, and the high value of gold will often stimulate the preservation of gold and the increase of speculative demand in the case of the depreciation of the dollar and the intensification of inflation. If the dollar is strong against other western currencies, the price of gold in the international market will fall. If the dollar depreciates slightly, the price of gold will gradually pick up.

(2) The monetary policies of various countries are closely related to the international gold price.

When a country adopts a loose monetary policy, due to the reduction of interest rates, the country's money supply increases, which increases the possibility of inflation and will lead to an increase in the price of gold. For example, the low interest rate policy in the United States in the 1960 s led to the outflow of domestic funds and a large number of dollars flowed into Europe and Japan. As the net dollar position held by countries increased, they began to worry about the value of the dollar, so they began to sell dollars and snap up gold in the international market. (3) The influence of inflation on the price of gold.

In this regard, long-term and short-term analysis is needed, and it depends on the degree of inflation in the short term. In the long run, if the annual inflation rate changes within the normal range, it will have little impact on the fluctuation of gold prices; Only in a short period of time, the price rises sharply, causing people to panic, and the purchasing power of monetary units declines, will the price of gold rise sharply. Although the world has entered the era of low inflation since 1990s, the use of gold as a symbol of currency stability is shrinking. Moreover, as a long-term investment tool, gold has a lower yield than bonds, stocks and other securities. But in the long run, gold is still an important means to deal with inflation.

(4) The influence of international trade, finance and foreign debt deficit on gold price.

Debt is a worldwide problem, not just a unique phenomenon in developing countries. In the debt chain, if debtor countries cannot repay their debts, it will lead to economic stagnation, which will further worsen the vicious circle of debt, and even creditor countries will face the danger of financial collapse because of the breakdown of relations with debtor countries. At this time, in order to maintain their own economy from harm, countries will reserve a large amount of gold, which has caused the price of gold to rise in the market.

(5) International political turmoil, wars and terrorist incidents.

Major international political and war events will affect the price of gold. The government pays for the war or in order to maintain domestic economic stability, a large number of investors turn to gold to invest, which will expand the demand for gold and stimulate the price of gold to rise. For example, World War II, the Vietnam War, 1976 coup in Thailand, and 1986 "Iran Gate" incident all caused the price of gold to rise to varying degrees.

(6) The influence of the stock market on the price of gold.

Generally speaking, the stock market falls and the price of gold rises. This mainly reflects investors' expectations of economic development prospects. If everyone is generally optimistic about the economic prospects, a lot of money will flow to the stock market, and the enthusiasm for investment in the stock market will rise, and the price of gold will fall. or vice versa, Dallas to the auditorium

In addition to the above-mentioned factors affecting the price of gold, the intervention activities of international financial organizations and the policies and regulations of central financial institutions in China and the region will also have a significant impact on the changes in the world price of gold.

(7) Oil price

As a hedge against inflation, gold itself cannot be separated from inflation. The rise in oil prices means that accomplices will follow suit and gold prices will rise.

References:

www.jinhuicaijing.com/