Analysis of the reasons behind the plunge of gold prices

Analysis of the reasons behind the plunge of gold prices

The plunge of gold price refers to the situation where gold prices have fallen sharply in a short period of time, which usually attracts the attention of market and investors.There may be many reasons behind the plunge of gold, including global economic situations, geopolitical risks, and changes in monetary policy.This article will analyze the reasons behind the plunge of gold prices from different perspectives.

Global economic situation

The global economic situation is one of the important factor affecting the fluctuation of gold price.When global economic growth slows down or signs of recession, investors usually seek to hedge assets, including gold.However, when the global economic growth is weak or uncertain, investors may choose to reduce the demand for safe -haven assets such as gold, resulting in a decline in gold prices.

Geopolitical risk

Geopolical risks are also one of the important reasons for the fluctuation of gold price.When the international situation is tight, the regional conflict is upgraded, or the major events occur, investors often turn to more safe -haven assets such as gold.However, when the situation of geopolitical tensions is resolved or market expectations are improved, investors may reduce their demand for risk aversion and other risk aversion, thereby lowering its price.

Changes in monetary policy

Monetary policy changes can also affect gold prices.For example, when the central bank announces a measure of interest rate hikes or reduction rates, it may trigger the market's expected adjustment of future inflation and interest rate trends, and then affect investors

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Add an additional income expectation."If the central bank takes an eagle position and increases interest rates, it means that the institution must pay more interest to borrow." Michael Widmer, chief product analyst of Merrill Lynch Securities Company

Non -structural products and valuable jewelry need to pay storage fees."According to reports," if the central bank continues to keep the pigeon position and continues to buy bonds, it means that the country flows into the market more liquidity.

This will reduce the bond return and push high -interest products such as noble souvenirs and jewelry."In addition, it also said," As the Fed is about to begin to gradually withdraw from the purchase of 100 million US dollars corporate debt plans,

The overnight repurchase interest rate has begun to climb to close to zero levels. "" If this is successful, it can boost non -interesting products such as rough materials and expensive jewelry. "