Research On The Pricing Influence Of China's Gold Futures Market

Gold has the dual attributes of both metal and currency,and the derived gold futures are regarded as the best investment product for he dging.The lack of gold futures pricing influence will make the trading price of domestic gold be controlled by other countries,and it cannot effectively play its function of investment and market regulation,so that the market will face additional risks.It is particularly important to explore the pricing influence degree of China's gold market and the ways to improve the pricing influence so as to reduce the risk brought by the international gold price fluctuation to the market and investors and improve the international status.This paper firstly elaborates the mechanism behind volatility spillover and correlation in different gold futures market prices through sorting out the influencing factors of gold future price,and theoretically analyzes the status quo of China's gold futures market and pricing influence,laying a foundation for the analysis of the following research results.Then,two GARCH models were used to explore the volatility spillover effect and dynamic correlation of gold prices in the th ree markets respectively,so as to conduct a quantitative analysis of the influence of gold pricing.The results show that the New York market still dominates the gold price due to its higher market effectiveness,while the Shanghai market also increases i ts pricing influence,which has an impact on the gold price of the other two markets.Trade protectionism aggravates the market segmentation and reduces the degree of price linkage of each market,or affects the strong position of New York market,while Shanghai market and Tokyo market have maintained a stable high correlation.According to theoretical analysis and empirical results,this paper argues that should draw lessons from the New York market management from the investor structure,transaction varieties,transaction system,etc,to improve the market efficiency,improve the degree of coupling with the Tokyo market,enlarge the application range of the "Shanghai gold",efforts to promote market internationalization and integration of the world in order to improve their gold pricing power of the market,to promote the economic development of our country.