First, the dollar
There is a negative correlation in gold and the dollar, that is, the dollar goes up, the gold price goes down, the dollar goes down and the gold price goes up. Once the hard currency dollar begins to plummet, gold will become a "quasi-currency" and play its role of maintaining value and hedging, and the price of gold will naturally be pushed up.
Second, inflation.
Inflation represents the devaluation of the currency, and gold with the property of preserving value is naturally sought after. When inflation accelerates, the value of almost all assets will shrink, and asset owners have the need to buy gold to "hedge", so the acceleration of inflation will also cause the price of gold to rise.
Third, the stock market trend.
The trend of the capital market will also affect the price of gold. When the capital market is at a high level, once market participants realize the risk, they will buy gold, sell stocks and transfer the risk. Gold is also a financial tool. If more people buy it, the price will naturally be pushed up.
Fourth, the relationship between supply and demand
The supply sources of gold include mineral gold and recycled gold, and the demand for gold includes the demand for hedging, physical gold demand and speculative demand. As a commodity, the price of gold will also be affected by the change of supply and demand. When supply exceeds demand, the price of gold falls; When demand exceeds supply, the price of gold will rise.
Well, the analysis of the impact of the rise and fall of gold prices is here, hoping to help everyone. Warm reminder, financial management is risky and investment needs to be cautious.