Although the dollar is not as stable as gold, its liquidity is much higher than that of gold. So the dollar is considered as the first kind of currency, and gold is the second kind. When the international political situation is tense and uncertain, people will buy gold because they expect the price of gold to rise.

But the currency held by most people is actually dollars. If the country needs to buy weapons or other materials from other countries during the war, it will also sell its gold for dollars. Therefore, the dollar will not necessarily rise during the period of political instability, but also depends on the trend of the dollar. Simply put, the dollar is strong and gold is weak; Gold is strong and the dollar is weak.

Usually, investors choose to save money when they protect their capital. If they take gold, they will give up dollars, and if they take dollars, they will give up gold. Although gold itself is not legal tender, it still has its value and will not depreciate into scrap iron. If the dollar is strong and there is a great chance of appreciation, people will naturally chase it. On the contrary, when the dollar weakens in the foreign exchange market, the price of gold will strengthen.

Second, war and geopolitics.

In times of war and political turmoil, economic development will be greatly restricted. Due to inflation, any local currency may depreciate. At this time, the importance of gold is fully demonstrated. Because gold has recognized characteristics and is an internationally recognized trading medium, people will invest in gold at this moment. Buying gold will inevitably lead to an increase in the price of gold.

Third, the world financial crisis.

When the financial system of the United States and other western powers is unstable, world funds will be invested in gold, and the demand for gold will increase, and the price of gold will rise. At this time, gold played the role of a financial refuge. Only when the financial system is stable, investors' confidence in gold will be greatly reduced, and selling gold will lead to a decline in the price of gold.

Fourth, inflation.

The purchasing power of a country's currency is determined according to the price index. When the price of a country is stable, the purchasing power of its currency is more stable. On the contrary, the higher the currency exchange rate, the weaker the purchasing power of the currency and the less attractive it is. If the price index in the United States and major regions of the world remains stable, holding cash does not depreciate, and there is interest income, it will inevitably become the first choice for investors.

On the contrary, if inflation rises sharply, holding cash is completely insecure, and interest can't keep up with the sharp rise in prices, people will buy gold, because the theoretical price of gold will rise with inflation at this time.

Verb (abbreviation for verb) local interest rate

Investing in gold will not earn interest, and the profit of its investment depends entirely on the price increase. When the interest rate is low, there will be some income from investing in gold; However, if the interest rate rises, it will be more attractive to collect interest, and the investment value of interest-free gold will decline. Since the opportunity cost of gold investment is high, it is more stable and reliable to put it in the bank to collect interest. Especially when the interest rate in the United States rises, the dollar will be absorbed in large quantities and the price of gold will be frustrated.

Economic situation of intransitive verbs

Prosperous economy and carefree life will naturally enhance people's desire to invest, people's ability to buy gold for preservation or decoration will be greatly increased, and the price of gold will be supported to a certain extent. On the contrary, people live in poverty. During the economic depression, people can't even meet the basic guarantee of eating and dressing, and the price of gold will inevitably fall.

Seven, the relationship between supply and demand of gold

The price of gold is based on supply and demand. If the output of gold increases significantly, the price of gold will be affected and fall back. However, if the output stops increasing due to the long-term strike of miners, the price of gold will appreciate in the case of short supply.

Among the factors that determine the success or failure of gold trading, the most crucial thing is whether the price trend of gold can be correctly analyzed and judged. Gold trading is not like buying a size, it depends entirely on luck. Even if the benefits can be obtained, the results can not be controlled at all, and it is necessary to predict through certain analysis.