Factors affecting the increase or decrease the price of gold concern to all interested investors to gold, whether he went directly or indirectly related because the price of gold, controlled largely determine the global economy and its index.
There are basically five key factors affect the price of gold, namely:
1 – the value of the U.S. dollar.
2 – jewelery demand from Asian markets and Chinese.
3 – central banks
4 – Gold production.
5 – increase investment in gold
The first factor which governs the price of gold is U.S. dollar. The more the U.S. dollar strong and high prices of gold, and vice versa the weaker and the decreased value of the U.S. dollar the higher the gold price, because people are scared of the weak dollar Instead, they resort to investing in gold bullion and also increasing the demand for gold because people tend in this case, any decline in value the dollar to the hoarding of gold, another commodity as a whole, the gold price rise here because of supply and demand.
Both the China and India are the biggest buyers of gold in the jewelry market. In 2004, Chinese citizens were granted ownership Ignoti for the first time in history. This raised a great demand for gold bullion, which affects the price of gold all over the world. In 2009, the decline was recorded with 32% of the demand for gold jewelry because of the global economic crisis, which led to a slight decline in the price of gold.
Monetary policies of central banks in cases of inflation moving important in the price of gold because interest rates in banks are low because people are moving away from investing in the notes and turned to investing in gold in the hope of better returns. But when you give the banks interest rates are high, the price of gold goes down.
Another factor influential in the price of gold is the high cost of production in the mines of gold, and strikes of miners, and the deterioration of the political situation, and the sharp increase in oil prices after the war in Iraq and the Sept. 11 attacks, lower gold production in the past five years. Ever-increasing world population increases the demand for investment in gold bullion. Finally, the natural desire of man to the treasure of gold.
Adapted from the Secretariat of the article from the site of today’s gold prices