<\/span><\/h2>\nGold has been resistant to the drastic economic challenges. It has remained unchanged despite the presence of other factors that affect stocks and investments. Gold is also considered as a way to diversify your investments. It can be one\u2019s go-to investment once the market goes downhill.<\/span><\/p>\nOn top of that, gold is an easy to buy and convert to cash. This enables many investors to avail gold easily and liquidate it to cash when the need arises.<\/span><\/p>\n<\/span>5 factors that affect gold prices in Hong Kong<\/span><\/strong><\/span><\/h2>\nGold in Hong Kong can be as much as 10% cheaper than mainland gold. In fact, a lot of people, even from the mainland, prefer to buy gold in Hongkong for its very cheap prices. Many factors can be attributed to this, but the following are the biggest drivers.<\/span><\/p>\n\n- \n
<\/span>Inflation<\/span><\/strong><\/span><\/h3>\n<\/li>\n<\/ul>\nGold, being dollar-denominated, moves inversely with the US dollar. The stronger the US dollar is, the more controlled gold value is. On the other hand, the weaker the US dollar is, the higher the price of the gold can soar through increased demand<\/span><\/p>\n\n- \n
<\/span>Interest rate<\/strong><\/span><\/span><\/h3>\n<\/li>\n<\/ul>\nWhen rates rise in tightening cycles, holding onto and lending out cash gives more profit. This often pushes investors to de-risk by selling assets such as stocks and bonds.<\/span><\/p>\nIn such an instance, investors look for uncorrelated assets that are related to these macroeconomic factors, which is usually gold.<\/span><\/p>\n