The model of factors affecting global gold price

Gold price has always been a hot topic for gold is a necessity in industries like electronics, telecommu- nication and aerospace. Gold is also an important means of stockpiling currency and investment tool. The major factors affecting gold price includes gold supply and demand in the world market, US dollar index, petroleum price, global political and economic situation, etc. This paper analyzes supply and demand status in the world gold market by establishing a gold price influencing factors model with Eviews 5.0. It concludes that the gold production and oil price are positively correlated with gold price, while the US dollar index is negatively correlated with gold price.