Precious metals definition
Precious metals spot gold and spot silver have the functions of value-added and
hedging. The transactions are all over the world, with daily trading volume of more
than 1 trillion US dollars. It is one of the most popular trading varieties on the
market and is also known as the world's largest stock. However, no institution or
consortium has sufficient financial strength to control this huge market, and its
open and transparent trading model is well recognized by investors.
The impact of the US
Precious metals are quoted in US
dollars, and investors generally use gold as an alternative investment product
for the US dollar. Therefore, they have a relatively negative correlation.
Generally, the price of gold goes up and the US dollar will fall.
Events such as war, geopolitical
tensions, and economic crises will cause safe-haven demand in the market,
thereby increasing safe-haven buying of precious metals and supporting their
Supply and demand
Any commodity is affected by the
relationship between supply and demand. If the supply of precious metals exceeds
demand, the price will fall, and if the supply exceeds demand, the price will