The Study Of The Gold Price Fluctuation On Basis Of Gold Currency Attribute

Since2000, gold prices soaring, especially the subprime crisis when gold prices to a high of＄1877an ounce. Gold there has been a significant rise in times of crisis, this is reminiscent of the history, gold is a world currency. Gold lost money functions in law. but gold is monetary attribute. When a country at war. economic collapse, political instability and thus affect the value of the country’s currency, gold can be used as good collateral, for any currency in the world. On the expenditure need international trade, gold can also be used as a means of payment, exchange of needed goods. At the same time, gold occupies a very important position in the National Central Bank reserves.Through the literature research of gold currency attribute, found that the existing literature does not only conducts the research to the gold currency attribute, usually to merge the investment attributes of currency attribute in the analysis of gold price. Through the study of the history of gold currency attribute, found in the Jamaica system is still a kind of monetary gold. The price of gold will be equivalent to the analysis of the gold exchange rates, so the value of gold is determined by the ratio of gold and the international currency. And the supply and demand is stable, the international currency cash is the dollar, so the dollar strength determines the price of gold. The dollar must meet the following four conditions, strong national strength, stable currency value, perfect financial markets, inertia factors can become the currency of international. When certain conditions are weakening, will affect the dollar international currency status, thereby affecting the value of the dollar. The dollar as the international currency of long-standing, long time no other currency alternative to the dollar, so the inertial factor is not as we consider factors. Therefore, we according to the three conditions of strength, stable currency value, sound financial market to find the United States GDP, the Dow Jones industrial average, the dollar index, the United States of America inflation. the United States federal funds rate as the indicator to judge us dollar confidence. Finally, we the people of the central bank gold reserves understanding error analysis, through the analysis of the transmission mechanism of the central bank gold reserves of gold, we found that the central bank gold reserves are mainly affect the supply and demand. So gold reserves increase or decrease only commodity attribute to the gold effect and has no effect on monetary attributes of gold, also did not affect the price of gold and the international currency, affect the price of gold will not be long.