An Analysis of Gold Price Trends Based on the Current Economic Environment

As a barometer of the global economy, the price of gold reflects not only monetary policy and market risks but also the function of hedging and value preservation in the face of inflation and geopolitical turmoil. The driving mechanism and long-term value of the gold price are explored by qualitatively analyzing macroeconomic factors, supply and demand, and future trends based on existing literature and data. The main content of this essay is 1. Factors that affected the price change of gold. In detail, this research will explain how Federal Reserve policy, inflation and geopolitical factors can affect gold prices. 2. Supply and demand dynamics. This essay will examine the structure of gold supply (mining, recycling) and demand (jewelry, investment, central banks) and its impact on price. 3. Prediction of futureshort-term rise and fall, long-term risetrends of gold price according to the economic environment. The result shows that in the long term, gold is expected to maintain an upward trend in price due to its anti-inflationary and safe-haven attributes, especially against the backdrop of the current global economic and political instability.