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What are the factors that affect the price of gold

1. Supply and demand are the simplest factors. Almost all commodities are the same and have price fluctuation rules. However, the global supply is small and the global reserve is basically clear, so there is no new supply.

2. The trend of the important stock market is opposite to the economic situation and the stock market.

The reason is that many investors are optimistic about the future economic development prospects, expect the trend of the stock market is clear, most people will choose to invest in the stock market, then the price of gold will inevitably affect.

3. The trend of the dollar The trend of the dollar is weak, the price of gold will go up, this probability accounts for more than 80%, when the dollar goes up the price of gold will go down.

Therefore, it is of great reference value to predict the trend of gold and the change of dollar exchange rate.

4. The history of global financial crisis tells us that when the economic and financial system of the United States and other Western powers is unstable, global funds will turn to the safe haven tool —- gold, and the demand for gold will increase, and the price will rise accordingly.

In 2008, during the financial crisis, the price of gold went through the roof.

Gold is widely regarded as a store of value.

When there is inflation, the purchasing power of money decreases, money becomes uncomfortably worthless, interest rates do not keep up with price increases, so gold is sought after.

War and turmoil.

In times of war and turmoil, economic development will be greatly limited or even reversed.

The shortage of commodity supply will lead to currency depreciation and inflation, in order to preserve the value of investors will flow to buy gold, gold demand will increase, thus causing the rise of gold price.