1 thought on “The main reason for the decline in gold”
Earnest
The main reason for the decline in gold is the fundamental reason for the fluctuation of gold price. The US dollar index begins to strengthen: the relationship between gold and the US dollar is usually the opposite. If the US dollar index is strong, the price of gold may fall; the decline in demand has led to a decline in gold prices: three countries in the world like gold, namely Russia, India and China. If the demand for gold suddenly declines, the price of gold will fall; the economic data announced by the United States is semi -impact on the market: the United States is the only superpower in the world. Economic development will affect many things, and gold prices will also be affected; oil prices: oil prices will also affect gold prices. Gold itself is a shelter that resists inflation, which is inseparable from inflation in the United States. The rising oil price means that inflation will follow, and the price of gold will fall. As long as the above factors occur, the price of gold may fall. This information 1. Any change in supply and demand will destroy the existing supply and demand balance and lead to price fluctuations. The impact of supply factors mainly include: changes in gold stocks; changes in the cost of mining of new gold mines; changes in the political, military and economic changes of gold producers; the impact of demand factors include: changes in the demand for gold manufacturing; Below, investors' demand for golden hedge is largely different; as the impact of the US dollar exchange rate as the world's main gold market settlement, the change in the exchange rate of the US dollar has become one of the important factors affecting the fluctuation of gold price. Generally speaking, in the gold market, there is a legal provision that when the US dollar appreciates, the price of gold fell, and when the US dollar fell, the price of gold rose. Strong dollar usually represents good domestic economic conditions. Domestic stocks and bonds will be pursued by investors, and gold as a means of value storage will be weakened; the decline in US dollar exchange rates is often related to inflation and stock market downturn, and the hedge function of gold is once again reflected. 2. National monetary policy factors When a country adopts a loose monetary policy, due to the decline in interest rates, the increase in national currency supply increases, which increases the possibility of inflation and will lead to rising gold prices. For example, in the 1960s, the US low interest rate policy prompted domestic capital outflows, and a large number of dollars flowed into Europe and Japan. Due to the increase in the net position of the US dollar in various countries, they were worried about the value of the US dollar, so they began to sell US dollars in the international market and eager to buy gold, which eventually led to the collapse of the Bretton forest system. The impact of international trade, fiscal and foreign debt deficits on the gold price of debt chain, if the debt country itself cannot repay debt, it will lead to economic stagnation, which will further intensify the vicious cycle of debt. Even the credit country will face the risk of financial collapse, because their relationship with the debt country is broken. At this time, all countries will reserve a large amount of gold to avoid economic harm and lead to rising market gold prices. First of all, many people think that gold has fallen sharply, and gold does not fluctuate relative to stocks. There may be many reasons for the recent decline in gold prices. According to the analysis of the US "Financial Times", gold prices have been affected by factors such as strengthening the US dollar, economic slowdown, and technical trade.
The main reason for the decline in gold is the fundamental reason for the fluctuation of gold price. The US dollar index begins to strengthen: the relationship between gold and the US dollar is usually the opposite. If the US dollar index is strong, the price of gold may fall; the decline in demand has led to a decline in gold prices: three countries in the world like gold, namely Russia, India and China. If the demand for gold suddenly declines, the price of gold will fall; the economic data announced by the United States is semi -impact on the market: the United States is the only superpower in the world. Economic development will affect many things, and gold prices will also be affected; oil prices: oil prices will also affect gold prices. Gold itself is a shelter that resists inflation, which is inseparable from inflation in the United States. The rising oil price means that inflation will follow, and the price of gold will fall. As long as the above factors occur, the price of gold may fall.
This information
1. Any change in supply and demand will destroy the existing supply and demand balance and lead to price fluctuations. The impact of supply factors mainly include: changes in gold stocks; changes in the cost of mining of new gold mines; changes in the political, military and economic changes of gold producers; the impact of demand factors include: changes in the demand for gold manufacturing; Below, investors' demand for golden hedge is largely different; as the impact of the US dollar exchange rate as the world's main gold market settlement, the change in the exchange rate of the US dollar has become one of the important factors affecting the fluctuation of gold price. Generally speaking, in the gold market, there is a legal provision that when the US dollar appreciates, the price of gold fell, and when the US dollar fell, the price of gold rose. Strong dollar usually represents good domestic economic conditions. Domestic stocks and bonds will be pursued by investors, and gold as a means of value storage will be weakened; the decline in US dollar exchange rates is often related to inflation and stock market downturn, and the hedge function of gold is once again reflected.
2. National monetary policy factors When a country adopts a loose monetary policy, due to the decline in interest rates, the increase in national currency supply increases, which increases the possibility of inflation and will lead to rising gold prices. For example, in the 1960s, the US low interest rate policy prompted domestic capital outflows, and a large number of dollars flowed into Europe and Japan. Due to the increase in the net position of the US dollar in various countries, they were worried about the value of the US dollar, so they began to sell US dollars in the international market and eager to buy gold, which eventually led to the collapse of the Bretton forest system. The impact of international trade, fiscal and foreign debt deficits on the gold price of debt chain, if the debt country itself cannot repay debt, it will lead to economic stagnation, which will further intensify the vicious cycle of debt. Even the credit country will face the risk of financial collapse, because their relationship with the debt country is broken. At this time, all countries will reserve a large amount of gold to avoid economic harm and lead to rising market gold prices. First of all, many people think that gold has fallen sharply, and gold does not fluctuate relative to stocks. There may be many reasons for the recent decline in gold prices. According to the analysis of the US "Financial Times", gold prices have been affected by factors such as strengthening the US dollar, economic slowdown, and technical trade.