What are the factors that affect the price of gold

The gold market is a large global market that operates 24 hours a day. At a certain point in time, the global gold price is consistent, and this price is the international spot gold price. Judging from the quotations of gold rings in the gold price market, the current prices of gold rings are much lower than a few months ago. What are the factors affecting the price of gold? The gold market is a large global market that operates 24 hours a day. At a certain point in time, the global gold price is consistent, and this price is the international spot gold price. Judging from the quotations of gold rings in the gold price market, the current prices of gold rings are much lower than a few months ago. What are the factors affecting the price of gold? The equilibrium relationship between the physical demand for gold and the production and stock of gold affects the price of gold in a certain period and within a certain range, forming a price mechanism in the category of gold commodity attributes. The supply and demand of gold can determine the price trend of gold in the medium and long term, which has been confirmed by historical experience. This price mechanism is also the basis for gold's value preservation, investment, speculation and other financial category attributes to affect the price of gold. There are currently about 160,000 tons of gold in the world, which is growing at an annual rate of about 2%. The annual supply of the world gold market is about 4,000 tons, mainly from the following aspects: mineral gold, accounting for about 60% of the total supply; resale of recycled gold, accounting for about 20% of the supply; central banks, international currencies IMF and private investment institutions dumped gold, which accounted for about 10% of the total. The industrial manufacturing needs of gold include: electronics industry, medicine, official gold coins and medals, etc. Generally speaking, the development speed of the world economy determines the actual demand for gold. The manufacturing demand for gold accounts for a small proportion of the international physical gold demand, and it has little effect on the price of gold. As the economy continues to grow, individual consumers' demand for gold jewelry and ornaments has also increased accordingly. Judging from the current demand for physical gold products, the demand for jewelry accounts for more than 70% of the total demand. Generally speaking, an increase in official gold reserves will cause gold prices to rise, and a decrease in official gold reserves will cause gold prices to fall. In addition, the price of gold has a certain relationship with the proportion of the world's official gold reserves in the foreign exchange reserves of various countries: the proportion is reduced, and the price of gold falls. It can be seen that the central bank's gold sales policy is the most direct and largest factor affecting the price of gold among supply factors. What are the factors affecting the price of gold? Generally speaking, gold has two attributes: commodity and finance. Its price is formed under the comprehensive influence and joint action of a variety of factors. Various forces influence and interact with each other and form fluctuations and changes in the price of gold by affecting the relationship between supply and demand . Previous post: Is gold hardness related to purity Next post: What gift to give for the 2014 New Year of the Horse