Political instability
When the politics and economy of a certain region or country fluctuate violently, it will lead to the decline of currency attraction and a large amount of market funds will flow to the commodity market. As the last line of defense against international economic and political risks, gold will undoubtedly lead to an increase in the price of gold;
Political instability will also lead to a sharp decline in the production industry, extremely unstable resource supply and disrupted social operation. Countries and institutions will choose gold with hedging function as strategic reserve materials, which will lead to an increase in the price of gold.
? war
Generally speaking, wars or regional conflicts will make gold prices rise. During the war, the development of the war situation can also predict the change of gold price. If the war situation becomes more intense, the probability and magnitude of gold price rise will increase. If the war is suppressed or comes to an end, the price of gold may fall. For example,1When the Soviet Union invaded Afghanistan in February 1979, the price of gold soared rapidly in a short period of time, but it gradually fell back after the war.
Global emergency
After a major emergency, the social and economic operation mechanism will be disrupted in a short time, at the same time, the stability of the government will be shaken, the monetary credit of the affected countries will be questioned, and the market will quickly turn to gold with hedging function to preserve its value. Causing the price of gold to rise, such as a sudden terrorist attack.
Core national security strategy
The adjustment of core national security strategy will lead to the expectation of international geopolitical instability, and it is also the most far-reaching factor in geopolitics. According to different strategic adjustments, the medium and long-term gold trend will also reverse. Political changes in countries such as the United States and China will become an important factor in the rise or fall of gold prices.