What does the fundamentals of gold investment mean

What is Fundamental Analysis?

If scientists announce that corn can help you live longer and reduce the risk of blood sugar, more people want to buy corn, and if corn is suddenly in short supply, corn** will naturally rise. Another example is that a prolonged rainy season in the United States can ruin the cotton harvest: the amount of cotton will be less than planned, and the amount of cotton will soar.

All of these are important factors that are inseparable from trading, and fundamental analysis can be divided into many different aspects:

1. Natural disasters.

Tornadoes, floods, droughts, tsunamis and other extreme weather will affect the changes, because most of the natural disasters have destroyed many different infrastructure, human life, all kinds of factors will have a certain negative impact on the national economy.

Natural disasters can reduce the production of important crop industries in the country, leading to a rise in food ** or a food crisis. **It is necessary to allocate more funds to solve the problem, if ** does not have sufficient budget, it may borrow goods from other countries or print money to solve the current problem, so that their countries will lend money, and the people will choose to invest in spot ** hedging because they want to preserve the value of their wealth, and **** will naturally rise.

2. Political factors.

**Election will be one of the influences on **** changes, such as the previous United States**, Trump is biased towards the financial side of corporate development, support** market activities, loose monetary policy should continue for a while. Instead, Biden will push up taxes and increase the budget deficit, with the goal of correcting the market. Large budget deficits may lead investors to choose safe havens.

It can be seen that political instability will lead to the rise and fall of the exchange rate.

3. The war factor.

War is one of the major factors that affect the rise and fall of the price of gold.

The instability of war will make people distrust their national currency, and the fluctuation of currency exchange rates will increase, and spot** will become a good wealth preservation tool.

4. National economic data or index factors.

Non-farm payrolls (NFP), central bank interest rate decisions, unemployment rate, gross domestic product (GDP), and more are among the important economic indicators that professional investors will analyze.

Investors can know the schedule of economic indicators from the economic calendar. Positive economic data indicators will reflect the economic strength of the country at that time, giving investors a concept of whether to invest in their currency or not.

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The so-called fundamental analysis refers to: according to the basic principles of economics, finance, finance and investment, investors evaluate the investment value and judge the reasonable price of the investment through the analysis of the basic elements that determine the investment value and the basic elements such as macroeconomic indicators of various countries, economic policy trends, industry development conditions, product market conditions, etc., so as to put forward corresponding investment suggestions.

**Fundamental analysis mainly includes:

1.The trend of the US dollar, the impact of the US dollar on the ** market is mainly in two aspects, one is that the US dollar is the price currency in the international ** market, so it is negatively correlated with the gold price. Assuming that the value of the gold price itself has not changed, the US dollar **, then the gold price will behave as ** on **.

Another aspect is the use of ** as an alternative investment vehicle to US dollar assets. In fact, in recent years, one of the main factors in the continuous rise in gold prices is the sharp rise of the US dollar for several consecutive years.

2.Market: In the international commodity market, it is one of the most important commodities.

The significance of the oil price is that the price of oil will push up inflation, thus demonstrating the value of the fight against inflation. Judging from historical data, in the past 30 years, ** oil prices and gold prices have a positive correlation of about 80%.

3.Geopolitical situation: Historically, it is the best means of hedging, so-called"As soon as the cannon sounded, ** ten thousand taels", that is, the perfect interpretation of the hedging value.

Any war or political turmoil will often boost the price of gold, and unexpected events will often cause the price of gold to soar sharply in the short term. On January 21, 1980, the gold price reached an all-time high of $850 per ounce. One of the important factors was the turmoil in the world at the time – the Iranian hostage-taking of Americans in November 1979 and the Soviet invasion of Afghanistan in December, which caused the price of gold to soar at a rate of $30-$50 a day.

There are many fundamentals that affect **, and even sometimes the impact of fundamental news on gold prices is bullish and negative, which will bring trouble to ** investors, which one do you believe? Which one to place an order on? This requires investors to play their own logical thinking, to see which news will become the most important factor affecting the price of gold, after grasping this, the trend of gold prices is clearer, of course, this is easier to say, easier said than done!

Investments are divided into fundamental and technical. Fundamentals means factual news about ** at home and abroad; Technical means that the disk technology is bullish and bearish.

As an investor, I can share some insights about investing.

**As a valuable jewelry and commodity, it has always been regarded as a safe-haven asset and investment. In times of economic instability and inflation, people usually turn to ** to preserve value. However, it fluctuates greatly and may not be suitable for everyone's investment needs and risk tolerance.

For young people, investing** may not be the best option. As a long-term investment, the yield is usually higher than that of assets such as real estate and real estate. In addition, there are additional costs such as custody and insurance that need to be factored into the investment.

Central banks have different investment goals and means. Central banks usually hold ** as foreign exchange reserves and buy and sell them according to market conditions. For the average investor, mimicking the central bank's investment strategy may not be realistic or feasible.

Therefore, I believe that investing** is a personal decision that needs to be chosen according to your investment purpose and risk tolerance.

** is a loss-based asset that is widely invested and can play its unique role in different portfolios. Here are some points to consider about investing:

For some investors, buying** may be a safe-haven investment that reduces risk across the portfolio. Especially in certain market conditions, or when the bond market is volatile, it is generally a more prudent investment.

**Can also be used as a hedge against inflation. Because the value of ** helps to preserve purchasing power and offsets some aspects of risk when inflation increases, it can hedge the impact of currency depreciation.

** is an internationally accepted asset that is usually sold in the commercial markets of many exchanges around the world. This also allows for a high level of liquidity, allowing investors to buy and sell at the right time.

Despite these advantages, there are some potential risks associated with investing that need to be aware of. For example, it is affected by the auspicious relationship between supply and demand in the market and other factors, and it is true that short-term, unstable fluctuations are not easy. Investors also need to keep in mind that any returns generated should not be seen as a major contribution to a portfolio, but also as a combination into your broader investment strategy.

In conclusion, investing has some advantages and risks, and investors need to carefully understand their investment risk tolerance to evaluate the corresponding investment strategy.

Fundamental analysis: **market** includes spot** and **, these two ** are both related and different. Both of these ** are subject to various factors such as the US dollar, the world political situation, supply and demand, and change greatly, so investors have more profit opportunities.

Therefore, the fundamental analysis of the trend includes the trend of the US dollar, the war and the political situation, the world financial crisis, inflation, interest rate level, economic conditions, supply and demand relations, etc.

Technical analysis: Technical analysis is based on the daily fluctuations in the market, including the daily trading market (including the opening price, closing price, most, lowest), time, trading volume and other numerical data, through the use of curves or coordinate charts to express these data, so as to **future**.

Theoretically, through fundamental analysis first, and then you can use technical analysis to capture the ups and downs of every gold market, buy low and sell high to make greater profits. However, Hansheng also has to take the trouble to say that every analysis method will not be perfect. We should not rely too much on technical analysis, nor should we be biased towards fundamental analysis.

Look at the quality of the data, compared with expectations, generally better than expected, it can be considered positive, worse than expected, is negative.

Of course, there are some other influences that need to be looked at, such as the US dollar.

I can give you some specific information for you to see.

**Investment is more speculative, so can not be completely analyzed in accordance with the fundamentals, especially when some major events are introduced, **changes will make you scratch your head, foreign exchange is closer to the fundamentals, investment ** can refer to the fundamentals of foreign exchange to analyze, in the analysis of fundamentals in particular to pay attention to two points, one is the hedging function, the other is the market sentiment, such as Europe and the United States, pounds and the United States, Australia and the United States**, especially the United States and Japan, the United States stocks continue**, the US dollar**, which shows that the market sentiment is improving, then** The hedging function is weakening, many people will close their positions on the investment profits, let them switch to some risk currencies or **, this time**will be**, on the contrary** will rise, such as recently, there is no bad news on the European debt, the fiscal cliff is also going in a positive direction, the launch of QE4 is good for the economy, bad for the dollar, at this time the market sentiment is going in a positive direction, so **up, ** and the yen's hedging function has weakened, so it will fall, this is the traditional analysis.

The unconventional analysis is like this, the Americans have two **very good uses, one is the dollar, which is reflected through a few QE, and the second is **, for example, the United States was downgraded, ** was fried to more than 1900, and then fell more than 1500, this American made a lot of money, low suck high and throw, this simple and traditional way of playing, Americans are the best, because they have Wall Street, rating agencies and other institutions that can make big news to hype, and now QE is launched, then the next fiscal cliff will let ** Another big swing, wait and see.

Foreign exchange investment refers to the exchange between different currencies carried out by investors in order to obtain investment returns. Foreign exchange is the abbreviation of "international exchange", which has two meanings: dynamic and static. The meaning of dynamic refers to a specialized business activity that converts the currency of one country into the currency of another country in order to pay off international creditor's rights and debts.

The meaning of static refers to foreign currencies and assets denominated in foreign currencies that can be used for international settlements. The term "foreign exchange" is commonly referred to in terms of its static meaning. It is characterized by high risk, but controllable risk, flexible operation, large leverage ratio, high returns, etc.

Pro, there are fundamentals for any investment, and the fundamentals are not single, just like the fundamentals of the steel market and the fundamentals of the US dollar foreign exchange, the steel market focuses more on capacity inventory and the economic situation, and the fundamentals of the US dollar foreign exchange are more important to the international economic situation and the current situation of the US economy. To be honest, neither **nor forex is recommended to do it now,**can't be bought,**too high. In terms of foreign exchange, holding RMB is a good choice in the short term, the United States has been printing money, don't buy dollars.

1.The trend of the US dollar, including the good and bad economic data of the United States and the impact of the movement of non-US currencies such as the euro, the Japanese yen and the British pound;

2.Investment demand, India, China, Japan and other Asian markets are still relatively strong, and the development of Asian ETFs is also a support for gold prices;

3.Commodity trends, professional investors can consider factors such as the gold-silver ratio and gold-oil ratio when measuring the price of gold.