Gold basics

First, Five gold trading market
London, New York (Chicago market), Zurich market, Hong Kong gold market, Tokyo gold market.

Second, market participants buyers and sellers
1, An international gold dealers: The most typical is the five gold dealers in London gold market, which itself is a gold trader, and has extensive ties with the world's major gold mine, gold dealers, shops and gold customers, so , five Golden Chamber of Commerce according to grasp the situation continues to quote bid and offer prices of gold.
2, Bank: can be divided into two categories, one is merely acting as a client trading and settlement itself does not participate in gold trading, brokers play a role in the market. A kind of self-service oriented.
3, Hedge Funds: Some large-scale use of hedge funds and national politics, business and other financial inextricably linked often worse than the first to capture the changes in economic fundamentals, the use of large sums of money management were buying and selling in order to accelerate gold market price changes and make a profit.
4, Investors: At this time both the company specializes in the sale of gold, as the major gold, gold producers, specializes in buying gold consumption (such as various industrial enterprises) gold products suppliers, buy gold jewelry line as well as private collectors, but also including specialized in gold trading business of the company, individual investors.
5, Brokers: agents specializing in non-exchange members to gold trading and brokerage commission organization.

Third, the factors that affect the market price of gold
1, USD trend: the international gold transactions are generally denominated in dollars as a unified unit, and the dollar for a long period of time is still the dominant international currency. So between the dollar and gold have maintained a significant shift in the negative correlation, ie, the weak dollar and strong gold; weak dollar Huang Jinjiang.
2, Wars and political turmoil periods: war will cause various councils have fluctuated devalued local currency or regional area monetary inflation that may occur due to occur. At this time, people will invest in gold target, preservation characteristics of gold in these turbulent times will be its head.
3, World Financial Crisis: When the United States, Britain and other Western powers of financial system instability phenomenon, the world capital injection plenum strong as gold and other commodities hedge, gold that will be expanded by rising demand.
4 , Inflation: If long-term inflation intense, there is no guarantee cash interest charges also keep up with skyrocketing prices. People will purchase gold, because at this time due to the intrinsic value of gold constant, while its commodity prices will rise with worsening inflation.
5, Crude oil prices: the intrinsic relationship points off from the global commodity markets, crude oil prices mean global price pressures intensify, causing inflation to facilitate the occurrence of gold will go up.
6, Gold supply and demand: In the period of non-monetary gold, as a commodity with supply and demand trends also affect the price of gold to a certain extent. If a substantial increase in gold production, gold is due to oversupply and fall. But if there is a long miners' strike led to stagnation of production, the price of gold will appreciate in the case of short supply.