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Global Economic Uncertainty:
The outbreak of the coronavirus pandemic has sparked uncertainty in the global economy, and investors have sought safe-haven assets. As a traditional safe-haven asset, the price of gold is sought after as a result.
Monetary policy easing:
In response to the economic shock of the pandemic, central banks around the world have adopted accommodative monetary policies, including interest rate cuts and quantitative easing. This monetary policy environment has led to a decline in real interest rates, which has reduced the opportunity cost of holding gold and stimulated investment demand for gold.
Dollar weakens:
Gold is usually denominated in US dollars, so the strength of the US dollar has a direct impact on the price of gold. In 2020, the U.S. dollar index saw a slide, which made gold cheaper for investors holding other currencies, driving up demand for gold.
Geopolitical tensions:
Geopolitical tensions, such as the US-China trade war and the conflict in the Middle East, have also increased risk aversion in the market, prompting investors to buy gold as a store of value.
Inflation Expectations:
Despite the low inflation rate at the beginning of the pandemic, with the gradual recovery of the economy and the increase in the money supply, investors are beginning to worry about possible inflationary pressures in the future, and gold is seen as an effective asset against inflation.
**Physical gold investment increases:**
In addition to gold trading in the financial markets, investment in physical gold has also increased. Investors buy physical gold such as gold bars and coins as a means of storing wealth.
**Technical Factors:**
The rise in gold prices was also influenced by technical factors. After the breakout of some key support levels, market sentiment heated up further, pushing prices to continue to rise.
The combination of these factors allowed the price of gold to reach an all-time high in 2020. However, the market environment is volatile, and the price of gold can also be affected by a variety of factors such as the economic, political and market sentiment going forward. #通胀的那些事# #通胀的那些事情# #金价飙升何在? #
