The Fluctuation Factors Of Gold Price And Pricing Studies

This paper reviews the economic history of gold price devided by three phases and discribs the price of gold in China's economic development. Then the famous Shanghai Gold Exchange and the other famous international gold trading market were compared to find out some common factors involving the price of gold trading, such as supply and demand, liquidity, oil prices, political instability origin, or even including the dollar and U.S. stock market and other factors. These factors are difficult to completely quantify in analysis. Inorder to find the factor which affects gold price, external factors above were eliminated in the study. The main gold market internal factors were taken into account in the empirical part of the gold in Shanghai and London market. The paper analyses the price formation mechanism of gold at home and abroad, based on the application of R/S analysis of empirical research of the domestic gold price volatility and its evolution and takes advertange of Granger Causality Test to indentify the relationship between international gold price and the domestic stock market and domestic price of gold.Empirical research shows that gold price volatility in both domestic and international presence and persistence of clustering features, and fluctuations in foreign markets, the characteristics of gold is stronger than the domestic market; domestic and international gold price fluctuations are sustained by the strong initial aptitude continuing evolution of the weak The international market continued to aptitude weak by the strong continuity of slow evolution of the domestic market. The domestic gold market on the international gold market price is small, but the impact is gradually enhanced.Combination of the above empirical results, presented through the establishment of multi-level market, increase market depth, develop the market participants, and enhance market breadth, and thus the amount of perspective to expand the market size, a certain international influence. In addition, we also present a rich gold through derivatives trading, better ease the domestic gold market volatility, better integration with the world gold market, to make the gold market gradually opening up to international.