ABSTRACT
One of the major purposes of this chapter is to identify the key factors that can shape the dynamics of gold prices, by drawing on relevant literature (see Figure 2.1). These factors are considered in the development of the theoretical model that explains the recent price dynamics experienced and to predict whether it is the right time to enter the Mainland market. The other purpose is to summarize extant research related to currency internationalization and arbitrage; we should try to analyze historical experience of other currencies from the literature.
