What is the rise in gold prices?

What is the rise in gold prices?

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  1. The rise in gold prices shows that the uncertainty of future economic prospects increases. Under the circumstances of other conditions, the price of gold will eventually depend on the scale of economic prospects and the size of the US dollar. It is possible to hit a new high.

    The international gold market is a relatively complex market. Gold prices are affected by many factors, such as inflation, US dollar trend, economic data, and emergencies.

    The expansion information:
    The gold price is calculated at the weight. There are several ways to weigh in the precious metal and gem markets. The most commonly used is the gold system (TROY), a TROY ounce is about 31.10 grams; and a normal ode is equivalent to 28.35 grams.
    The dollar price per ounce of gold.

    The rise of gold prices will affect the currency prices of some countries.

    The investors can make a relatively basic judgment and grasp of the trend of gold prices based on these factors.

    The prices of gold prices in the world are mainly three types: market prices, production prices and quasi -official prices. All kinds of gold prices are derived from this.

    The market price includes spot and futures prices. These two prices are both connected and different. Both prices are restricted and interfered by various factors such as supply and demand, and the change in the price determination mechanism is very complicated.

    It is important, the influencing factors of spot prices are similar to the futures price, so the direction and amplitude of the two are basically the same.

    but due to the convergence of the market trend, the foundation difference between gold (that is, the difference between the spot price of the gold and the futures price) will continue to decrease with the approach of the futures delivery period. In the delivery period, the futures price The price of the transaction is roughly equal. Theoretically, the futures price should stably reflect the cost of holding the spot price plus the holding period of a specific delivery period.

    The influential factors:
    1. The US dollar trend
    is also one of the important factors that affect the fluctuation of gold price. There are two main influences of the US dollar on the gold market:

    The US dollar is the price currency in the international gold market, so it is negatively related to the price of gold. Assuming that the value of the gold prices itself has not changed the US dollar, the price of gold is expressed in the price;
    r The other aspect is that gold as an alternative investment tool for US dollars assets. In fact, in the past few years, the price of gold has continued to rise. One of the main factor is the sharp decline in the US dollar for three consecutive years.

    2. Political situation
    Gold in history is the best means to avoid risk aversion. The turbulence of the situation often promotes the price of gold, and sudden events often make gold prices rise sharply in the short term.

    3. Inflation
    The as the only non -credit currency in this world, gold and banknotes, deposits and other currencies, it has very high value, not as other currencies as values. The representative, and its own value is minimal.

    In extreme cases, currency will be equivalent to paper, but gold will not lose its value as precious metals at any time. Therefore, it can be said that gold can be a representative of eternal value.

    4. Supply factors
    This fluctuations are based on the supply and demand relationship. If the output of gold has increased significantly, the price of gold will be affected. In addition, the application of new gold technology, the discovery of the new mine, and the sales of the central bank will cause the gold price. Or due to the occurrence of miners and long -term strikes, the overall situation of smaller supply will benefit.

    5. Demand factors
    (1) change of the actual demand for gold (jewelry, industry, etc.).

    (2) The need for value preservation.

    (3) speculative needs.

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