Among the factors that determine the success or failure of gold trading, the most crucial thing is whether the price trend of gold can be correctly analyzed and judged. Gold trading is not like buying size, it depends entirely on luck. Even if the benefits can be obtained, the results can not be controlled at all, and it is necessary to predict through certain analysis. There are two main methods to predict the price trend: basic analysis and technical analysis. Both of them analyze the market from two different angles and have their own characteristics in actual operation, so investors should combine them.

1. Basic analysis of gold investment The so-called basic analysis focuses on the external and internal factors of politics, economy and individual market. Add other investment tools to judge whether the market should enter or leave, and adopt corresponding strategies.

Analysts with basic analysis as the main analysis method have been studying the prices of gold mining companies, relevant information of government departments and reports of various institutions all day to speculate on the future trend of the market. The main factors involved in the basic analysis have been involved before, in a nutshell, they include:

(1) Political situation Political turmoil usually brings favorable conditions for gold prices. War will make prices rise and gold prices will be supported. World peace will adversely affect the price of gold.

(2) The increase or decrease of gold production will affect the balance between supply and demand of gold. The output of gold is the largest in South Africa, and any workers' strike or other special circumstances will affect its output. Secondly, the production cost of gold will also affect the output. 1992, due to the increase of gold production cost, many gold mines stopped production, which led to the high price of gold for a time.

(3) Government Behavior When the government needs to obtain foreign exchange, it will sell its gold reserves to obtain it regardless of the price of gold at that time. Correspondingly, the data of government gold recovery is also an important indicator affecting the price of gold.

(4) Demand for Gold Besides being a tool for preserving value, gold has more industrial and decorative uses. Changes in the production of electronics, dentistry, jewelry and other gold industries will affect the price of gold.

(5) the trend of the dollar. The dollar and gold are relative investment tools. If the dollar is strong, there will be greater gains from investing in the dollar, so the price of the dollar will be affected. On the contrary, when the dollar is in a weak market, investors will reduce their capital investment in the dollar and invest in the gold market instead, pushing the price of gold to strengthen.

(6) Inflation When the price index rises, it means an increase in inflation. The arrival of inflation will affect the preservation function of all investments, so the price of gold will also rise and fall. Although the role of gold as an anti-inflation weapon is not as good as before, the rise of Qualcomm will still stimulate the price of gold.

(7) Interest Rate Factor If the interest rate is raised, investors' deposits will get higher interest rates, which will have a negative effect on interest-free gold. On the contrary, falling interest rates will be more beneficial to gold prices.

There are many aspects in the basic analysis of gold trend. When we use these factors, we should consider how strong their respective functions are. Find out the primary and secondary positions and influencing time periods of each factor, and make the best investment decision.

The basic analysis of gold is divided into short-term (usually three months) factors and long-term factors. We should treat its influence separately.

2. Technical analysis of gold investment In order to win in the war, soldiers should not only have well-equipped weapons, but also develop an excellent ability to kill the enemy. Similarly, when trading gold, investors should not only have accurate information sources, but also master the beneficial weapon of technical analysis. Technical analysis originated from statistics, which can help us find the best intervention price in the market. It is a supplement to basic analysis and an indispensable analytical tool.

Technical analysis is based on the daily price fluctuation in the market, including the daily opening price, closing price, highest price, lowest price, turnover and other digital data, and expresses these data through charts, so as to predict the future price trend. Every analytical method will not be perfect. We can neither rely too much on technical analysis nor be biased towards fundamental analysis.

Theoretically, after the basic analysis, we can use technical analysis to capture the ups and downs of every gold market, buy low and sell high, so as to earn more profits. Moreover, technical analysis is an objective analysis method based on mathematical statistical equations, which is very logical. It filters the subjective opinions of investors and is much more stable than analysts who rely on personal feelings.

First, the K-line chart The current chart is drawn by processing the daily data through a computer. Its biggest function is to reflect the overall situation and price information. The column line can display the daily opening price, closing price, highest price and lowest price of the gold market on a candle line. A daily chart can be drawn by summarizing the daily price trend of the gold market. If short-term trading is needed, similarly, short-term trading signals can be captured by short-term charts (such as 5-minute charts).

The chart reflects the market situation, so there are different trends. For better analysis, people add some auxiliary lines to the chart, so that some trading signals are easier to be found by us. There are dozens of common auxiliary lines in the market, and different investors also have their own choices. This chapter only selects a few representative ones to give you a brief introduction.

B. The histogram of trading volume shows the total trading behavior of commodities or financial instruments in a certain period. Usually, the transaction volume is represented by a straight bar (vertical line starting from zero). When making a map, it is done at the lower end of the graph or K-line chart, so that the price and volume of each period can be linked vertically. The greater the transaction volume, the greater the height of the vertical line.

Volume chart provides a way to represent the number of transactions in the market. When the trading volume is enlarged, it shows that the price of investment tools has been recognized by the market; On the contrary, if the trading volume of a certain price is small, it shows that market traders lack trading humor, so there is a danger of market price reversal. When using the trading volume chart to determine the price trend, it is necessary to remember that the market transactions may be very light before the market holidays or before the release of major market statistics.