After a period of experience in the London gold market, many people have found that it is very difficult to accurately predict the trend of London gold, especially the short-term trend. However, there are certain rules in judging its general trend. In the investment world, the rise and fall of some varieties other than London gold investment are known as the wind vane for judging the direction of London gold, which is helpful for judging the trend of London gold. Next, let's talk about these issues.
The first one that has an important impact on the fluctuation of London gold price is the economy of the United States. The long-term London gold trend has been influenced by the macroeconomic development trend of the United States and the fiscal and monetary policies implemented. Because when we usually look at the quotation of London gold, we can clearly see that it is quoted in US dollars. Therefore, relevant important economic data in the United States have a great impact on the trend of London gold.
The direction of fluctuations in crude oil prices. According to some data, the probability that oil prices will rise and fall in tandem with London gold is around 80%. Normally, when oil prices rise, the trend of London gold also follows closely behind. As oil prices fell, so did gold prices. There are also times when oil prices and gold prices deviate from each other. But usually, after a period of adjustment, eventually the two breeds converge in direction. Therefore, while we pay attention to the trend of London gold, we can refer to the rise and fall of crude oil prices, and pay attention to the frictions, struggles and evolutions in the major oil-producing countries that have not yet allied with the United States and their mutual relations, so as to get a glimpse of the possibility of the future direction of gold fluctuations in the oil price fluctuations caused by geopolitics.
The above are the two important elements that must be understood in London gold investment. Simply speaking, these are the weather vanes that may reflect the fluctuation of the trend. That's all for this article, I hope it will be helpful for investors.