Hello, as a precious metal, gold has been the "hard currency" of the world since ancient times. Its reserves are stable and it is basically impossible to manufacture (the cost of manufacturing gold far exceeds the price of gold itself), so it has become an important commodity for hedging and preserving value. The fluctuation of international gold price is essentially the change of supply and demand, the demand for gold rises and the price of gold rises; Demand for gold fell, and the price of gold fell. The following are some factors that affect the price of gold:

(1) inflation. The purchasing power of money is based on the price index. If prices are stable, the purchasing power of money will be more stable. In the period of inflation, the benchmark interest rate is lower than the inflation rate, so holding cash cannot guarantee its purchasing power. At this time, people will choose to buy gold to preserve the value and drive the price of gold to rise. Usually, the higher the inflation rate in major western countries, the greater the demand for gold purchase, and the international gold price will also rise.

(2) the dollar price. The exchange rate of US dollar is one of the important factors that affect the fluctuation of gold price. On the one hand, the US dollar is the quoted currency in the international gold market, so there is a negative correlation between the gold price and the US dollar. The appreciation of the dollar will make the price of gold fall, and the depreciation of the dollar will make the price of gold rise. On the other hand, the appreciation and depreciation of the US dollar reflect the strength of the market's confidence in the US dollar to some extent. When the market has strong confidence in the dollar, it will increase its holdings, the dollar will appreciate and the price of gold will fall. When the market lacks confidence in the dollar, it will tend to change the dollar into gold, so the dollar depreciates and the price of gold rises.

(3) Market interest rate. Because gold itself can't get interest income, the preservation and appreciation mainly depend on the rise of its market price. When the market interest rate rises, investors are more willing to deposit funds in banks or invest in financial products, rather than choose gold, resulting in a decline in the price of gold. However, when the market interest rate falls, for example, central banks around the world cut interest rates and released monetary easing signals, which kept interest rates at a low level and interest income became less attractive, driving the price of gold to rise. This is obvious in American interest rates. As a major international currency, in general, when the real interest rate in the United States rises, interest-bearing assets are more attractive, the anti-inflation value and investment value of gold decline, and the price of gold falls, and vice versa.

(4) the stock market. When the stock market is good, investors have good expectations for economic development and enthusiasm for investment. A large amount of funds will flow to the stock market, and the decline in gold demand will lead to a decline in prices; When the stock market is depressed or even the financial crisis, investors' confidence in the economic prospects and investment environment is greatly reduced, and the safe-haven function of gold is highlighted. A lot of money will be invested in gold, the demand for gold will rise, and the price of gold will rise.

(5) geopolitics. When a country is in war or political turmoil, it will seriously affect the national economic development, even make the economy stagnate and decline, and cause the risk of serious depreciation of the local currency. As the world's "hard currency", gold's attractiveness has increased, safe-haven funds have flowed to the gold market, and the price of gold has risen.