How to do “Gold Trading”
Today’s stock market has verified our predictions again.
In terms of operation, we suggest that in addition to the strong stocks shared in our groups, you should pay attention to reducing your own stocks for defense, because I want to tell you a good news. Among the investment portfolios we currently hold, a large number of stocks will rise rapidly in the near future. You just need to hold the stocks and wait for the rise.
Today I will continue to popularize some knowledge of gold trading! The content of the meeting is what are the factors that affect the fluctuation of gold prices? Please read carefully! !
Inflation, global financial markets, the state of warring countries, domestic reserves, etc. will affect the price of gold!
Before the 1970s, the price of gold was basically determined by governments or central banks of various countries, and the international price of gold was relatively stable. In the early 1970s,
The price of gold was no longer directly linked to the US dollar, and the price of gold gradually became market-oriented.
The factors that affect the change of gold prices are increasing, which can be divided into the following aspects:
(l) Influence of the US dollar exchange rate:
The US dollar exchange rate is also one of the important factors affecting gold price fluctuations.
Generally speaking, in the gold market, there is a rule that when the US dollar rises, the gold price falls;
When the US dollar falls, the gold price rises.
A strong US dollar generally means that the domestic economic situation in the United States is good, and US stocks and bonds will be sought after by investors, and the function of gold as a means of value storage will be weakened;
while a decline in the US dollar exchange rate is often related to inflation, a sluggish stock market, etc., and the value-preserving function of gold is once again reflected.
(2) The monetary policies :
The monetary policies of various countries are closely related to the international gold price.
When a country adopts an easy monetary policy, the interest rate will fall, the country’s money supply will increase, and the possibility of inflation will increase, which will cause the gold price to rise. For example, the low interest rate policy of the United States in the 1960s prompted domestic capital outflows, and a large amount of US dollars flowed into Europe and Japan.
As the net US dollar positions held by various countries increased, they began to worry about the value of the US dollar, so they began to sell US dollars in the international market and rush to buy gold, which eventually led to the collapse of the Bretton Woods system. However, after 1979, the impact of interest rate factors on gold prices has gradually weakened.
(3) The impact of inflation on gold prices.
For this, we need to make a long-term and short-term analysis, and combine it with the degree of inflation in the short term.
In the long run, if the annual inflation rate varies within the normal range, then its impact on the fluctuation of gold prices will not be significant; only in the short term, when prices rise sharply, causing people to panic, and the unit purchasing power of currency declines, will gold prices rise significantly. Although the world has entered an era of low inflation
Since the 1990s, the role of gold as a symbol of monetary stability has been shrinking. Moreover, as a long-term investment tool, the yield of gold is increasingly lower than that of securities such as bonds and stocks.
However, in the long run, gold is still an important means to deal with inflation.
(4) The impact of international trade:
Finance, and foreign debt deficits on gold prices.
Debt, a global problem, is no longer unique to developing countries. In the debt chain, not only will the debtor country itself be unable to repay
Its debts, leading to economic stagnation, but economic stagnation will further worsen the vicious cycle of debt.
Even the creditor country will face the risk of financial collapse due to the breakdown of relations with the debtor country.
At this time, all countries will reserve a large amount of gold to maintain their own economy from harm, causing the market gold price to rise.
(5) International political turmoil, war, etc.
Major international political and war events will affect the price of gold.
The government pays for war or to maintain the stability of the domestic economy, and a large number of investors turn to gold for value preservation.
These will increase the demand for gold and stimulate the rise in gold prices. For example, World War II, the Vietnam War, the 1976 Thai coup, and the 1986 “Iran-Contra” incident all caused gold prices to rise to varying degrees. For example, the terrorist attack on the World Trade Center in the United States in September 2012 caused the price of gold to soar to nearly $300.
(6)The impact of stock market:
The impact of stock market conditions on gold *prices. Generally speaking, when the stock market falls, gold prices rise.
This mainly reflects investors’ expectations of economic development prospects.
If everyone is generally optimistic about the economic prospects, a large amount of funds will flow into the stock market, stock market investment will be enthusiastic, and gold prices will fall.
(7)Commodity prices:
Commodity prices. For example, oil, commonly known as “black gold”, if the price of oil rises, it will also cause the price of gold to rise.
Many people have been sending me messages, asking me to guide gold trading!
I think now is not the best time!
Before there is an absolutely controllable market, I will not easily make a move!
You can learn some knowledge about gold trading!
Waiting for the right time, I will give some investment advice! At the same time, I also remind everyone to maintain a good investment mentality! Investment is not overnight! It is everywhere! Only if your own principal is not lost!
Investment can last long! Reasonable reduction of positions to avoid risks is necessary!
*In order to find a new direction to take over, I think the first thing to focus on is the gold market. There are three reasons for this:*
*1. Compared with the stock market, the gold market has a more flexible trading mechanism. At the same time, the gold price is currently in its infancy compared to the Indian stock market, which has been rising for ten years!*
*2. The current political landscape. Whether it is the Israeli-Palestinian war or the Russian-Ukrainian war, it is a negative factor for the stock market! But it is a positive factor for the gold market!**3. As a hard currency, gold has the ability to maintain and increase value in essence!*