Dollar exchange rate: In gold investment, the price of gold is usually negatively correlated with the dollar exchange rate. 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.
Geopolitical situation: during the period of war and political shock, economic development will be greatly restricted. Due to inflation, any local currency may depreciate. At this time, the importance of gold came into play. 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.
World economic situation: When the financial system of the United States and other western countries is unstable, world funds will be invested in gold, and the demand for gold will increase, and the price of gold will rise.
Supply and demand: The operation of gold price is based on market supply and demand. 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.
World financial crisis: With the emergence of the crisis, people will naturally hold money in their own hands, and there will be a large number of bank runs or bankruptcies. At this time, gold played the role of a financial refuge. Only when the financial system is stable, investors sell gold, causing the price of gold to fall.
Inflation: If the price index in the United States and major regions of the world remains stable, cash holdings will not depreciate, and interest income will inevitably become investors' first choice. On the contrary, if inflation rises sharply and there is no guarantee to hold cash at all, people will buy gold.
Oil price: gold itself is a hedge against inflation, which is inseparable from inflation in the United States. Rising oil prices mean that inflation will follow, and so will gold prices.
Local interest rate: 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 charge interest, and the investment value of interest-free gold will decline.
Economic situation: People's carefree life will naturally enhance people's desire to invest, people's ability to buy gold for preservation or decoration will greatly increase, and the price of gold will be supported to a certain extent. On the contrary, when people are poor and the economy is depressed, the price of gold will inevitably fall.