Factors influencing the price of gold

Mondo Finance Updated on 2024-01-30

Only by understanding the influencing factors can we more accurately ** gold price trend.

It is mainly affected by the following factors:

1) The trend of the US dollar. To put it simply, the relationship between the two is strong and weak, because if the dollar is strong, there is a good chance of investing in the dollar, and people will naturally chase the dollar. Conversely, the weaker the dollar is in the forex market, the stronger it will be.

2) War and political situation. The times are turbulent, and people tend to look at them.

The bid is directed to **, which causes the price of gold to rise. However, investors should not apply this principle mechanically, and should also consider factors such as the US dollar.

3) The world financial crisis. When the financial system is unstable, people will pay more attention to the function of a refuge for funds, and turn to make it

4) Inflation. When inflation is sharp and the purchasing power of cash is no longer guaranteed, the value of the store of value** will increase greatly.

5) Oil**. Oil*** means that inflation will follow, and so will the price of gold**.

6) Local interest rates. Since there is no interest income, it is more suitable to invest when the interest rate is low, and if the interest rate in your home country is high, you should consider whether it is worth it to lose interest income to buy**.

7) Economic status. If the economy is prosperous, the price of gold will also be supported to a certain extent, otherwise, people's basic needs cannot be met, and the price of gold will inevitably be **.

8) Supply and demand. The price of gold is based on supply and demand. If there is a significant increase in the production of ** due to the adoption of new technologies, the development of new mines, etc., the gold price will be affected and fall. However, if the increase in production stops due to reasons such as prolonged strikes by miners, or the trend of investment prevails, the price of gold will appreciate in the event of an oversupply of demand.

End of article. There are many aspects to the fundamental analysis of the trend, and when we use these factors, we should take into account the strength of each of them. Find out the primacy and time period of each factor to make the best investment decisions.

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