"Don't worry, I will analyze it for you slowly!!"

"First: the relationship between supply and demand. To put it bluntly, the relationship between the demand for gold by companies and individuals who buy gold and the production capacity of gold manufacturers determines the price of gold. This is the most critical.

If the amount of gold that can be produced is as much as the amount of iron on the market, then gold will not be able to maintain its current price of more than 300 yuan per gram."

"Among all investment varieties, gold has always been a focus product. Gold investment is especially popular among Chinese investors. For example, the label "Chinese Aunt", this type of investor is also a leader in domestic gold investment, and

Most people will choose to buy gold when the price of gold is gradually rising. To know when to invest in gold, we must be clear about other factors that drive gold prices.

The gold spot market tends to have relatively strong seasonal supply and demand patterns, and gold spot consumption in the first half of the year is relatively in the off-season. In recent years, gold prices generally bottom out around the second quarter. Starting from the third quarter, driven by factors such as holidays, gold consumption demand will increase.

Gradually increasing, by Christmas at the end of the year, gold spot demand will gradually reach its peak, which will push the price of gold to continue to rise.

Second, war and turmoil in the international situation

Gold is an internationally recognized medium of exchange. In the development process of the international monetary system, from the second half of the 19th century to World War I in 1914, it experienced the gold standard period. As one of the most important hedging products, gold has

In times of war and turmoil, social and economic development is restricted, and people rush to buy gold as a safe haven, causing the price of gold to rise sharply. As the saying goes, when a gun goes off, ten thousand taels of gold come from this.

Major political and war events in the world will affect the price of gold. The government spends a lot for war or to maintain stable growth of the domestic economy. Political turmoil causes a large number of investors to turn to gold for hedging investment, etc., etc., which will expand the demand for gold and stimulate the rise of gold prices.

.

For example, the Second World War, the U.S.-Vietnam War, the 1976 Thai coup, and the 1986 "Iran-Contra" incident all caused the price of gold to rise to varying degrees. Another example is the "9.11" incident in 2001, which caused the price of gold to soar to the highest price of that year.

The war between Russia and Ukraine last year caused gold to rise from US$1,600 to US$2,200. Of course, as everyone gets used to the sudden factor of war, the current small regional conflicts can no longer affect the price of gold.

Third, the world financial crisis

Gold is a world-recognized financial refuge. When instability occurs in the financial system and a major financial crisis occurs, the price of gold will rise immediately.

Fourth, the dollar depreciated

The U.S. dollar and gold are both important reserve assets in the international market. They can be said to be two relatively opposing indicators. If the U.S. dollar performs well, the trend of gold will be weakened. Therefore, when the U.S. dollar depreciates, it will most likely indicate the price of gold.

rise.

Fifth, inflation

When the inflation rate is higher, the purchasing power of money becomes weaker, that is, you can only buy fewer things with the same money. At this time, the function of gold as a store of value is highlighted, leading to an increase in the price of gold.

In the long run, if a country's annual inflation rate fluctuates within the normal range, it will have little impact on gold price fluctuations; only in the short term, prices rise sharply, causing people to panic, the unit purchasing power of currency decreases, and the gold price

will rise significantly.

Sixth, international oil prices rise

As an international strategic reserve resource, oil is known as black gold. It plays an equally important role as gold internationally. Therefore, oil and gold can be said to be linked brothers. When oil rises, gold rises, which will bring about an increase in oil prices.

factors will also affect the rise in gold prices.

Seventh, monetary policy

When a country adopts a loose monetary policy, due to the decline in interest rates, the country's money supply increases, increasing the possibility of inflation and driving up the price of gold.

When market interest rates rise, greater income can be obtained by charging interest, and the investment value of gold will fall, and the price will also fall. On the contrary, if interest rates fall, investors will turn their attention to the gold market, leading to a big decline in gold.

rise.

At present, the U.S. interest rate hike has almost reached the top, and it will be a matter of time before it stops raising interest rates or even cuts interest rates. Therefore, in the long run, there is motivation for gold to rise.

Eighth, the economy is improving

When the national economy improves, the idle funds in the hands of ordinary people increase, and the level of purchasing power will also increase, which will encourage people to buy gold as decoration or to store value, causing the price of gold to rise.

Fundamentally speaking, the rise in gold prices is due to rising demand and risk aversion. The direct factor driving the rise in gold prices is never single. We need to analyze it from multiple angles to truly understand the nature of the rise and fall of the gold market.

Ninth: Stock market trends

When the stock market rises sharply, people will abandon gold and buy stocks, so gold will fall. When the stock market is sluggish and in a long-term decline, many people will abandon stocks and buy gold to preserve their value. At this time, gold

will rise.
Chapter completed!