How gold investors judge London gold prices

Gold investors judge the fluctuation of London gold prices generally depends on a variety of factors.

Gold spot supply and demand relationship, US dollar exchange rate, international political situation, global inflationary pressures, global oil prices, global economic growth, central bank gold reserves increase and decrease, gold traders and other forces affect the trend of London gold.

Under normal circumstances, investors can refer to the relationship between the US dollar, the stock market, oil and gold, can have a relatively simple judgment and grasp of the trend of gold.

1. The relationship between the price of gold and the US dollar: Since the international gold price is calculated in US dollars, the price of the US dollar and gold is the closest. Generally speaking, the dollar rises and gold falls; the dollar falls and gold rises, and the dollar and gold form a reverse interactive relationship;

2. The relationship between gold price and oil price: international crude oil price is closely related to inflation level, and gold also has the function of resisting inflation, therefore, crude oil price and gold price are closely related;

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3. The relationship between the price of gold and the international commodity market: As the economies of the BRIC countries (China, Russia, Brazil, India) continue to rise, the demand for non-ferrous metal commodities continues to be strong. , International non-ferrous metals and other international commodity prices continue to rise.

This is the embodiment of the linkage of commodity prices. Therefore, when judging the trend of gold prices, investors must pay close attention to the trend of international commodity markets, especially the prices of non-ferrous metals;

4. The relationship between the price of gold and the stock market: From the past trend, gold and the stock market run in reverse, that is, when the stock market market rises sharply, gold tends to fall. It should be noted that the stock market here refers to overseas stock markets, such as New York, London, and Tokyo.

5. The relationship between the price of gold and seasonal supply and demand factors: the relationship between supply and demand is the basis of the market, and the price of gold is also related to the relationship between supply and demand in the market.

The gold spot market has a strong seasonal pattern. For example, every year during the traditional Chinese New Year, affected by the consumption of Asian countries, the demand for spot gold will also expand, then the price of gold will also rise.

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