Prediction of Gold ROI Based on LSTM model

Abstract

The developed financial market system must develop the gold market and play an important role in the financial market. Like other financial markets, the gold market also faces the risk of price fluctuation. Although gold has the monetary attribute, its own value is stable, and it has the hedging function, the price of any commodity always fluctuates around its own value, and the market risk caused by gold price fluctuation is inevitable. At the same time, the gold market trading products are almost homogeneous, which determines that the price of gold in the domestic market and the domestic and foreign markets cannot deviate too much, and the existence of certain price differences between different markets will lead to arbitrage between markets. Therefore, it is necessary to forecast the gold yield. Based on this, this paper uses LSTM model to forecast the price yield of gold. The research results show that the price of gold will still fluctuate in the near future. This research has certain theoretical and practical significance for the application of LSTM model in the financial field.