Empirical Analysis Of Multiple Market Factors Affecting The Price Of Gold

Whether as the monetary in history or as the non-monetary in modern society,to their excellent natural attribute and social attribute, gold has always been the favor of people. After the non-monetization of gold, gold has got its attribute. While its monetary attribute did not disappear, because of its good nature attribute. Gold is an asset which has both currency attribute and investment attribute. Domestic gold prices rose sharply since 2003, from 86 yuan per gram in 2003 to 380 yuan per gram in 2011. The fluctuation of domestic gold price is influenced by multiple factors. Dow Jones Industrial Average, price of crude oil, exchange rates, inflation play a major role among these factors. This article is intended to study the changes in the price of gold in domestic from the perspective of investment.This article describes both abroad study and domestic study of the price of gold briefly,after which it describes the relationship between the changes in the price of gold and the changes in the international monetary system qualitatively.Then differences of the major gold markets are described. Then we select the data of past six years, respectively study the relationship between the domestic price of gold and the Dow Jones Industrial Average, the price of crude oil, inflation, the dollar against the RMB exchange rate by calculation ADF test, the correlation test, and Generalized Difference Method. Taking the above analysis results into account, some advice is given from the angle of investors.