What is the impact of inflation on the price of gold?

Updated on Financial 2024-03-23
3 answers
  1. Anonymous users2024-02-07

    I personally study the following three reasons that have an impact on ****.

    First: ** and the dollar is hedged, the dollar depreciates, **appreciates, remarks: the dollar is bearish for a long time.

    Second: ** is the oldest currency, in the current era of legal tender, the abolition of the gold standard, he still occupies a place in the issuance of currency, (13 states in the United States have returned to the gold standard) in the era of inflation, people and ** in order to fight the financial crisis, or in order to maintain value, will buy a large amount, so, through the relationship between supply and demand, pull the price of gold.

    Third: rarity, as far as I know, all the ** mined in the world can now be loaded in a large container.

    Finally, I'd like to correct some minor issues upstairs.

    Second: your data has serious errors and deviations, it is recommended to take out all the data, the data must pay attention to accuracy, this error is too much, I will not take it out, **of** has been rising now. The inflation rate in the United States from 1970 to 1980 was second only to the two periods in American history, from 1915 to 1920.

    From 1940 to 1950, after 1982 the control was quite low. During that time, U.S. agriculture went through the resurrection of the Great Recession, and the automobile industry went through the resurrection of the Great Recession.

  2. Anonymous users2024-02-06

    Theoretically, it is very simple to consider only this one factor, and the value remains the same. **=(1 + Inflation Rate) * Original Price. In fact, inflation basically had no effect on the price of gold, and from 1970 to 1980, the price of gold rose from 35 to 850, and there was no inflation in the United States.

    When the era of high inflation in the United States is coming. More than 10%, the price of gold has indeed been **, 1980-1999, **back to 251... Looking at the current few years, the United States has been facing austerity.

    More than doubled. In fact, it is the human factor that affects the price of gold.

  3. Anonymous users2024-02-05

    Inflation leads to a decline and then a decline. Inflation affects the purchasing power of a country's currency. When a country's prices are stable and inflation is low, the purchasing power of its currency will be very stable, and the value of the country will not attract consumers, and it will naturally be.

    When a country's ** fluctuates greatly, the inflation rate is very high, and the goods ** are unstable, it will inevitably cause people to panic, the purchasing power of money in people's hands will decrease, and the cash will not be ***, people will buy ** to preserve their value, and ** will continue **.

    What factors are generally affected by the market?

    1. Supply and demand: The supply of the world's leading market mainly comes 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, the International Monetary Organization (IMO) and private investors sold off, accounting for about 10% of the total.

    **The demand mainly comes from the actual use demand, the demand for hedging investment and the demand for international reserves. For example, in India, China, and other major consumer countries, the off-peak season of their consumption seasons has an impact on the trend.

    2. US dollar exchange rate: The US dollar exchange rate is one of the important factors affecting the fluctuation of gold prices. Because ** is denominated in US dollars, usually when the US dollar rises, gold falls, and when the US dollar falls, the price of gold rises.

    Usually, when investors choose to save capital protected, they will give up the US dollar, and the US dollar will be given up. Although it is not legal tender per se, it always has its value and will not depreciate into scrap metal. If the U.S. dollar is strong, there is a good chance that the U.S. dollar will appreciate, and people will naturally chase the U.S. dollar.

    On the contrary, when the dollar is weaker in the foreign exchange market, the **** will be stronger.

    3. The significance of oil :* for oil is that excessive oil prices will cause inflation worries, and gold prices; If the price of oil is too low, the price of gold**. In the past 30 years, an ounce can be exchanged for an average of 15 barrels, and there is a positive correlation between oil prices and gold prices of about 80%.

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I'll explain it to you.

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