What is the price of gold? What are the factors that affect the price of gold?

　　Gold has always been a favorite in the international investment market.Of course,Taiwan is no exception.Chinese people have invested in gold for thousands of years.According to relevant records,it is estimated from the cultural relics unearthed in China that the early Shang Dynasty was the earliest period when gold appeared.Subsequently,the value of gold was greatly excavated,and it became the hard currency of China and the world.In the early market economy before paper currency was invented,precious metals such as gold and silver were circulated as the main hard currency.Why has gold always been so popular with investors?In terms of materials,gold is a soft and corrosion-resistant precious metal.Because its golden color is similar to the sun's rays,gold is also covered with magical colors(there is room for imagination).At the same time,gold has the advantages of simple processing and good storage.Compared with paper money,gold has real value and is recognized by people all over the world.Today,a"value consensus"has been reached.Next,this article will explain to you how to look at the price of gold?What are the key factors that affect the price of gold?

　　In today's Internet age,as long as you have a mobile phone or computer connected to the Internet,you can invest all over the world without leaving your home.Especially with the rise of electronic trading of spot gold contracts,we can obtain it from major financial websites or investment platforms in the island.The latest gold charts and investment information.As long as you download a mutual market account,you can participate in investment in the international market through powerful charts.One account can buy the world's most popular precious metals(gold,silver),crude oil(WTI crude oil,Brent oil),foreign exchange currencies.Pairs(such as EUR,GBP,JPY,AUD,CHF,etc.),stock indices(such as Dow,S&P 500,Nikkei,Hang Seng,etc.).

　　The above is an interception of the gold price chart on the trading platform of the mutual market.It can be seen that gold has shown an upward trend recently,so how do you judge the rise or fall when you see this chart?

　　In response to the question of"how to look at the price of gold",we divide it into three steps,from large to small,first to last,and the summary is three words:potential,position,and state.

　　Trend:It can be understood as a trend,but it is not completely limited to a trend."Potential"refers specifically to the macro information level,which is a big background and framework for the current price trend."Potential"is the first and most important element in the technical analysis method.Only by determining the direction of the"potential"can the trading time and trading point be confirmed.From the analysis of macro information,we need to know what the current fundamentals of the gold market are,and what factors,policies and economic background are currently causing the price to rise or fall.If we analyze from a technical point of view,we need to use the“N word The Law",which is much simpler and more efficient to apply than moving averages and other complex trend indicators."N-word rule"is further divided into rising N-word and falling N-word.For example,rising N-word means that the price rebounded from the bottom to a certain extent,and lasted for some time,forming the first rise from the low point to the next low point.The N word,combined from these three aspects,indicates an upward trend.Only when it is confirmed to buy gold in an upward trend can funds be more secure,and the investment income and return ratio can be maximized.

　　Bit:generally refers to the position,point,belonging to the middle information.Point analysis is the second element of price technical analysis.Once the disk gives a clear trend judgment(in accordance with the N-word rule),then several entry positions must be determined.Near or above the effective support,on the contrary,entering the short position is near or below the effective resistance.We can use the previous transaction intensive area,the previous high and low points,or the golden section line(Fibonacci sequence)to The importance of identifying potential support and resistance positions in the market is self-evident.The entry position determines whether a strategy is ultimately profitable.

　　State:refers to the state,form,which belongs to microscopic information.Pattern analysis is the third element of price technical analysis.Once the trend is clear and the potential position is determined,you only need to wait for the price to give a confirmation signal at the potential position.Generally,this signal is often obtained by the K line or other technical indicators.The K-line is the most powerful weapon for confirming whether a potential location is valid.At the same time,the morphology is divided into a variety of specific patterns of bottoms and tops.For example,the common double bottoms and double tops,W bottoms and M tops,and head and shoulders tops all belong to the scope of"states".This is also the last step to confirm before entering the market.Use the above signals to determine when you can enter the market.

　　Gold is both an industrial product and a currency,and its functions are extremely powerful.Therefore,there are many factors that affect the price of gold,including supply and demand,geopolitics,inflation,the trend of the US dollar,the global economy,and the level of interest rates.

　　Supply and demand relationship:It is mainly divided into supply and demand.The price of any commodity will be affected by changes in supply and demand factors,and the same is true for gold.If the supply exceeds the demand,it will cause excess supply and affect the price drop.On the contrary,if the supply exceeds the demand,it means that the demand has increased and the supply cannot keep up,so the price will rise.Specifically,there are three main factors in the supply side,namely:mining,central bank intervention,and renewable resources.This is the main basis for judging whether the gold supply will be excessive.On the demand side,the main factors are determined by industrial demand,jewelry demand,and investment demand.

　　Geopolitics:Antiques in prosperous times,gold in troubled times,gold has been a hard currency since ancient times.When wars come,social and economic collapses and other risky times,buying and holding gold is the most effective way to preserve wealth.The outbreak of war will prompt the rapid development of currency.Depreciation,and buying of gold out of demand for a store of value can cause prices to skyrocket.A more representative event is the Iraq War in 2003,which was a large-scale battle since the 21st century.When the war started,the price of gold immediately soared.In just a few months,gold rose from 400 US dollars to 1,000 US dollars.This belongs to Typical geopolitical factors.

　　Inflation:Simply put,inflation means the devaluation of the currency.The higher the inflation value,the lower the purchasing power of the currency(higher inflation means more expensive things).Gold is one of the best tools to fight inflation.Therefore,once inflation comes,investors will choose to sell the currency they hold and buy gold to preserve value.The good principle of this part is that when the demand for value preservation increases,the price of gold will naturally rise.On the contrary,if the inflation rate is lower,the increase of gold will be smaller,and the trend between the two is positively correlated.

　　Dollar Movement:Since gold is priced in US dollars,the movement of the US dollar is closely related to gold.As the price of gold,the US dollar has no influence on the trend of gold.In addition,because the historical relationship between the US dollar and gold is very close,the US dollar was pegged to gold during the gold standard.Usually,when the dollar rises,gold falls,and when the dollar falls,gold rises.

　　Global economy:Gold,as an international hard currency,plays a pivotal role in the global financial system,so the quality of the global economy will directly determine the amount of consumption and investment of residents,which also affects the amount of investment to a large extent.residents'lives.When the economy is good,residents have the ability to consume,their willingness to consume and invest will be stronger,the consumption of gold will also increase,and the liquidity of the financial market will be relatively sufficient.At this time,whether it is gold or the stock market,both easier to rise.When the economy is bad,the consumption power of residents is greatly reduced,and the willingness to consume decreases.However,when the economy is extremely bad,gold will also rise,because gold is a value-preserving commodity,and investors panic in the economic recession.,tend to be sought after by safe-haven funds,thereby pushing up prices.For example,in the financial crisis that broke out in 2008,the Fed continued to release huge amounts of liquidity,which prompted the price of gold to hit new highs,which was caused by the risk-averse factor.

　　Interest rate level:Changes in market interest rates directly affect the fluctuations of national currencies,usually only two points need to be remembered-interest rate hikes and interest rate cuts.Raising interest rates means rising deposit interest rates,which means that residents’deposit income will increase and bank savings will increase,but consumption desire will decline,which will curb inflation to a certain extent.The reduction of social currency in circulation,the increase in US interest rates is an appreciation of the US dollar,and the appreciation of the currency means that the purchasing power is strengthened,so it will suppress the price of gold.Remember the last two simple rules-"A rate hike is bad for gold,a rate cut is good for gold".

　　The above are some key knowledge for getting started with investing in gold.Why is the mutual market the first choice for investing in gold?Mainly,the mutual market has several very obvious advantages:

　　·Various custom functions,ultra-low spreads

　　·Take profit/stop loss can be preset before opening a position

　　31 kinds of graphical analysis tools,30 kinds of technical indicators

　　2 execution modes,4 order types

　　·One-click trading and embedded news system

　　·Support one-click transaction,trailing stop loss and partial closing function

　　Open an account and trade immediately,not only can you enjoy ultra-low spreads at 0 fee to participate in gold trading,but you can also get bonus rewards