Why does the price of gold soar? These are the reasons behind it
Among all kinds of investment products, gold has always been a focus product. Gold investment, especially Chinese investors, have a good heart, such as the label "China aunt". These investors are also the leaders of domestic gold investment, and most of them choose to buy gold when the price of gold is gradually rising. We should know when to invest in gold We must be clear about the driving factors of the gold price. Why does the gold price soar?
First of all, we need to find out the direct factors that affect the price of gold?
First, war and turbulence in the international situation
Gold is an internationally recognized trading medium. In the development of the international monetary system, the second half of the 19th century - World War I in 1914, experienced the gold standard period. Gold is one of the most important risk aversion products. In the period of war and evidence turbulence, social and economic development is restricted. People will rush to buy gold to avoid risks, resulting in a sharp rise in the price of gold. As the saying goes, once a gun is fired, 10000 taels of gold will come.
Second, the world financial crisis
Gold is recognized as a safe haven of funds in the world. When the financial system is unstable and the financial crisis has a great impact, the price of gold will rise immediately.
Third, the depreciation of the US dollar
Both the US dollar and gold are important reserve assets in the international market, which can be said to be two opposite indicators. If the US dollar performs well, the trend of gold will be weakened. Therefore, when the US dollar depreciates, it probably indicates the rise of gold price.
When the inflation rate is higher, the purchasing power of money is weaker, that is to say, the same money can only buy less things. At this time, the function of gold preservation is highlighted, which leads to the rise of gold price.
Fifth, international oil prices are rising
As an international strategic reserve resource, oil is known as black gold, which plays the same important role as gold in the world. Therefore, oil and gold can be said to be linked brothers. The rise of oil and gold will also affect the rise of gold price.
Sixth, interest rates have fallen
When the market interest rate rises, the interest can get more income, the investment value of gold will fall, and the price will also fall. On the contrary, if the interest rate falls, investors will turn their eyes to the gold market, which will lead to the sharp rise of gold.
Seventh, the economy is improving
When the national economy is good, the idle funds in the hands of the people will increase, and the purchasing power level will also rise, which will promote the people to buy gold as decoration or hedge, leading to the rise of gold price.
Fundamentally speaking, the rise of gold price is a rising demand and risk aversion mentality. The direct factors driving the rise of gold price are never single. We need to analyze from multiple angles to see the essence of the rise and fall of gold market.
[disclaimer] the publication of this article by finance managers for the purpose of transmitting more information does not mean that they agree with their views or confirm their descriptions. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk