What does the rise in gold prices mean?

1. U.S. dollar exchange rate

The appreciation of the U.S. dollar generally means that the domestic economic situation in the United States is better. At this time, U.S. domestic stocks and bonds will be favored by investors, which will weaken gold to a certain extent. Position as a reserve and store of value.

The decline in the US dollar exchange rate is often accompanied by inflation, stock market downturn, etc. At this time, the value-preserving function of gold will be reflected again. Since the international gold price is denominated in U.S. dollars, it usually shows an inverse interactive relationship in which the U.S. dollar rises and gold falls, and the U.S. dollar falls and gold rises.

2. Monetary policy

When a country adopts a loose monetary policy, due to the decline in interest rates, the country's money supply increases, increasing the possibility of inflation and pushing up the price of gold. of rise.

Extended information:

Trend period:

Although the gold market is traded 24 hours a day, there are still certain skills in choosing a trading period. Refer to gold The price chart can provide a good analysis of the future gold price trend in 2013, and can also analyze the entire gold price trend from 1999 to 2013. Here are some trading session experiences.

London market: London is an old financial center in the world, and banks from various countries are accustomed to starting large transactions after the London foreign exchange market opens. Therefore, the day-to-day volatility in the global foreign exchange market begins to intensify as it opens.

Opportunities for individual investors will also gradually increase during this period. Factors such as the European Central Bank's interest rate decision, the German IFO climate index, the GDP of Eurozone countries, and the consumer price index of Eurozone countries will also play a role in fueling the situation.

New York market: Since the U.S. stock market is the world's largest capital flow center, the New York foreign exchange market is also the most active foreign exchange trading market in the world.

Baidu Encyclopedia-Gold Price