What factors are generally related to the fluctuation of gold price?

Gold investment/


Gold spot is a huge international market, and the gold price is also extremely vulnerable to the impact of international news, resulting in dramatic fluctuations and short-term unilateral trend. This short-term fluctuation of gold price often hides considerable profits, which is a good time for investors to make profits. We must always pay attention to the latest international news, political situation changes and other information, so as to accurately grasp the upcoming market trend. However, what factors are generally related to the fluctuation of gold price? This may not be clear to every investor. So today I'll give you a detailed talk:


1. Dollar status


Although in the 1990s, with the collapse of the Breton Senri system, gold and the dollar also announced a formal decoupling. However, in the social financial system, there is an inseparable potential connection between the two. You can infer the direction of gold price fluctuation according to the latest state of the US dollar, which is of great reference significance for us to invest in spot gold. For example, the price of gold is generally opposite to that of the US dollar. When the US dollar depreciates, the price of gold tends to rise. On the contrary, when the U.S. dollar appreciation, gold prices tend to fall under pressure.


2. International silver, oil and other hedging products


As spot gold is a kind of risk aversion product, it belongs to the relationship of "rising and falling at the same time" like silver, oil and other risk aversion financial products in the world. For example, in general, when international oil prices rise, gold prices tend to rise. And when oil prices fall, the price of gold will also decline. The best proof is that the US air raid on Iran last year not only caused a sharp rise in international oil prices, but also raised the price of spot gold with the rise of oil prices.


3. International situation


As mentioned above, gold is a risk averse product, so the fluctuation of gold price has a lot to do with the risk aversion of the market. When the international political situation is tense and the war is chaotic, because people are not optimistic about the future economic prospects, they will ignite the risk aversion mood of the market and switch to the gold market. Under the influx of a large number of funds, the gold price will rise. On the other hand, when the international political situation is stable, the risk aversion of the market will cool down and the gold price will fall under pressure.


Generally speaking, what factors are related to the fluctuation of gold price? The price fluctuation of gold generally has a great relationship with the status of the US dollar, oil, silver and other similar risk aversion products, and the international situation. We should accurately predict the trend of the gold market and pay close attention to the latest international trends, so as to grasp the possible profit opportunities in time.


[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

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