1. Gold and the US dollar are negatively correlated: if the US dollar is strong, people will naturally chase the US dollar, and if they invest in the US dollar, there is a great chance of appreciation. On the contrary, when the dollar weakens in the foreign exchange market, the price of gold will strengthen.

2. International political situation: During wars and political shocks, economic development will be greatly restricted, and various currencies may depreciate. At this time, the importance of gold was brought into full play, but there were other factors.

3. 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.

4. Inflation: If the price index in the United States and major regions of the world remains stable, the cash held will not depreciate, and there will be interest income, which will inevitably become the first choice for investors. On the contrary, if inflation rises sharply and holding cash is completely insecure, people will buy gold.

The content of this article comes from: The New Encyclopedia of Financial Law (Fifth Edition) edited by China Law Publishing House.