1. The factors that affect the price of gold are: the exchange rate of the US dollar. If the dollar goes up, the price of gold goes down. You can use this rule to do some gold arbitrage. If the dollar falls, the price of gold will rise. Monetary policy. When a country adopts a loose monetary policy, due to the decline of interest rate, the country's money supply will increase, increasing the possibility of overall inflation, which will lead to the rise of gold prices. Inflation. In the long run, it has little effect on the fluctuation of gold price. It's just that the price will rise sharply in the short term, causing panic, so the price of gold will rise. International policy. Major international politics or wars will directly stimulate the price of gold to rise. Stock market. Once the stock market falls, the price of gold will rise. Oil price. Rising oil prices mean that the currency will rise, and so will the price of gold.
2. Inflation is not difficult to understand. Once the purchasing power of inflation currency becomes worse, people's money becomes worthless, and the interest on deposits can't keep up with the price increase under inflation. At this time, everyone is thinking about how to protect their assets, and the demand for hard currency gold will rise. Therefore, the supply and demand of gold break the routine, and the supply exceeds demand, and the price will naturally rise. As the pricing currency of gold and an important foreign exchange reserve asset of various countries, the US dollar has a far-reaching impact on the price of gold. The concerns of these two companies can be replaced. Therefore, when the US dollar index falls, gold will rise, and when the US dollar index rises, gold will fall, and the trend is the opposite.
During the international turmoil or war, Marx once said: "Gold and silver are naturally not money, and money is naturally gold and silver". This is determined by the durability, rarity, portability and divisibility of gold. As a hard currency, gold plays an important role in maintaining value and avoiding risks. In a special natural period, people's panic will lead to the rise of gold. The relationship between supply and demand Now more and more gold is circulating in the market as a commodity. Because it is a commodity, it naturally forms a relationship between supply and demand. Supply exceeds demand, prices rise, supply exceeds demand, and prices fall.