ABSTRACT
Gold is a noble among metals and a favorite in the economic world. It plays an important role in currency system evolution. Gold is considered a refl ection of the ultimate non-governmental wealth. Gold has been a core component of the currency system because of its unique physical and chemical properties, but since the development of modern economy and the fi nancial industry, gold’s core position in currencies has been dented. In the 1970s, the International Monetary Fund (IMF) canceled gold’s currency function in legal form. After that, gold became one of the most important investment avenues in the fi nancial fi eld due to its special exclusive value. Although gold is not used anymore in trade settlements, it is an acceptable settlement means for both parties in fi nal balancing of payments. This chapter tries to analyze the factors that infl uence gold price and the price mechanism of gold so as to provide a basis for the judgment of gold price trend in the future and a reference basis for gold investment in theory and practice.
