Impact on Gold Price

What factors influence the gold rates ?
Trading in commodities is the most in thing recently after the financial crisis in 2008 had the share markets across the globe soar down. The crisis not only bought the markets to lowest possible levels with banks and even nations declaring bankruptcy but also that was the turning point in the history of the trading market. It permanently affected the markets all over the world and trading in some sense came to a standstill. The future of any trade was more unpredictable than ever. That is when the commodity market surged the best possible heights. Commodities like Gold and Silver made it through sky high rates in the mid 2010 when the average price for silver in the US was touching a high rate of $1100 per kg, whereas the Gold rates were approximately $400 per 10 grams. This is when the price was the highest and investment in these commodities flowed like anything. Gold being one of the major attractions in the US since time unknown has become the most respected investment in the market. There are various reasons behind the same and the factors affecting the price of Gold are also given below –
Gold Prices live

The primary reason why Gold is so much in demand in US is due to its high ornamental use and traditionally Gold being valued as the second possessed asset after a house in American families. Thus there being a huge demand the prices never fall too much. But after the stock market crash and the pricing bubble burst the gold prices also fell to nearly $250 per 10 grams. So what we understand or can derive from the same is that Demand and Supply is the primary factor deciding the rise and fall of Gold prices in any economy. US being a home to gold demand the prices remain high despite being the crashes in the stock market the demand is all time high and hence the prices. But when the demand goes low especially during no marriage season when the marriages are very less auspicious and hence no scheduled function for marriage takes place, the demand is typically low. If in such cases people invest low in Gold then the demand comes down and so the prices have to come down showing the abundance of supply.

The second most important factor affecting the price of Gold in US is the Dollar Exchange rate of the Euro. This decides as to how the currency is pegged against the Euro and hence the exact exchange rate of Gold can be decided as against the European Gold rates which are generally decided in ounces.

The last but not the least factor in deciding the gold prices is the inflation rate and the performance of the overall economy. This can be sometimes in a positive trend or else negative and the same is then reflected on the price of gold on the market. Nevertheless it remains the most wanted commodity in US be there an occasion or not.

to see live gold prices: gram, tola, oz -> LivePriceofGold.com