Cast Bo Huang Yu:Who determines the international spot gold price

Many investors are eager to knowgoldWho determines the price? In fact, as a globally recognized hard currency, gold's price is influenced by various factors, and its fluctuations are not manipulated by any individual, consortium, or investment institution.

Who determines the international spot gold price
1The trend of the US dollar

The international gold price is calculated in US dollars, and there is a negative correlation between the gold price and the US dollar. In other words, if the US dollar depreciates, the corresponding gold price will rise, so the trend of the US dollar will affect the gold price.

2Whether the world political situation is stable or not

When the global political situation is stable, people are more inclined to choose currencies issued by various countries rather than gold. This is because the credit rating of currencies issued by various countries is relatively high, and the return rate is more substantial, so the price of gold will decrease. But when the situation is turbulent, even in the event of war, people will prioritize buying gold for asset security reasons, which also leads to an increase in gold prices.

3Economic situation

When the economic situation is developing well, people tend to invest more in real estate, stock market, etc., which can achieve considerable returns and also reduce the number of people buying gold, resulting in a natural decline in gold prices. People often buy gold during times of financial crisis, as gold can maintain its value and increase in value, leading to an increase in gold prices.

4Inflation level

The purchasing power of a country's currency is determined by the price index, which stabilizes with the stability of prices. However, when inflation is severe, the purchasing power of currency weakens. That's why when inflation occurs, money becomes worthless, and people actively buy gold, causing its price to rise.

5Oil prices

Oil is the main energy source, and there has been no significant deviation in the purchasing power of gold towards oil for so long. According to relevant statistics, no matter how turbulent the economy may be, gold has a significant impact oncrude oilThe purchasing power of gold is always maintained within a certain range, so the price of gold will change with changes in oil prices. When oil prices rise, the price of gold will also rise, and vice versa.

6The supply and demand situation of gold

Gold is also a commodity and will be affected by production. If production increases, the price of gold may decrease; On the contrary, if the production decreases, the price of gold will rise in a situation of insufficient supply. In addition, the application of new gold mining technologies and the discovery of new mines will cause changes in gold production, so it is normal for gold prices to decline.
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