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Here are some of situation that often affect the price of gold:
1. Changes in exchange rate. A weaker U.S. dollar exchange rate is usually encouraging the increase in world gold prices. This is because investors choose to sell their dollar and then buy the gold with the hope that gold can protect the value of their assets. For example, while the value of dollar exchange rate against other currencies continue to decline, the price of gold continue to rise.
2. World political situation. Increase of gold price in the end of 2002 and early 2003 occurred as a result of the attack to Iraq by the U.S. command allies. Market participants shifted from money market investment and the Stock Market to gold investment, causing the demand for gold jumped so sharply.
3. Supply and demand. An example of this 'supply and demand of gold' is like the event occured in mid-1980. At that time, forward sales by mining companies are always blamed for the rise of gold price. Although in business term, the mining company's actual behavior is reasonable. By making forward sales when gold rose, they could secure the mine output price at a fairly attractive price. Another example, the case in mid-1998 in which the gold price continued to decline. At that time, Central Banks in Europe Union said that they would reduce their gold reserves regarding the implementation plan of the Euro currency. Because of it, the price of gold has been plunged immediately around 290 dollars per troy ounce.
4. The global economic situation. Approximately 80 percent of the total supply of gold has been used by jewelry industry. Jewelry consumption is a major influence on the demand side. As economic conditions improved, the need for gold tend to rise. However, the most sensitive industry to be influenced deeply is jewelry industry.
Recession had influenced the jewelry demand in the year 1982-1983, because at the same time, the gold price also rose. In the recession of the early 90, The level of jewelry demand was falling too, but at this time the price of gold also fall down simultaneously.
As described above, economic situation may lead to high inflation. So, the benefit of using the gold as a hedging tool against inflation has been felt by investors for a long time. With gold, investors got a perfect protection against the decline in purchasing power. On the years 1978-1980 the price was booming. While inflation in the U.S. rose from 4 percent to 14 percent, the gold rose three-fold.
5. Interest rate. When interest rate rise, peoples tend to keep money on deposit better than gold which does not earn interest (non interest-bearing). This will cause pressure on the price of gold. Conversely, when interest rate fall down, the price of gold will likely rise. In theory, if the short-term interest rate rise, your gold fell. In Indonesia, this theory does not always work. In 1998, as Rupiah fell sharply against the U.S. dollar currency, the government raised interest rate significantly for the hope to put a halt to rising U.S. dollar exchange rate. As a result, despite from rising interest rate, gold price also rose.
you can also check another article that relate to it :http://notegolddiamond.blogspot.com/2009/11/before-you-sell-your-jewelry-for-cash.html
What else can I help you with?
What factors influence supply others than price?
demand of the product
How much i one once of gold worth?
As of my last update, the price of gold fluctuates regularly based on market conditions. Typically, one ounce of gold is valued in the range of $1,700 to $2,000, but it’s important to check real-time financial news or market data for the most current price. Factors such as geopolitical events, inflation, and currency strength can all influence gold prices.
What are the determining factors of the future price of gold?
Some determining factors of the future price of gold are the valuation of other assets and on differences between U.S. data and the rest of the world. This makes trends driven by fundamentals very difficult to understand.
What is the going price of gold these days?
There are many factors to consider when trying to determine the price of gold, which is known to fluctuate up and down in as little time as an hour. However, today (12/21/12), the market closed with the price of gold at $1656.18/oz.
What factors contribute to determining the real price of a good or service?
The real price of a good or service is determined by factors such as supply and demand, production costs, competition, and government regulations. These factors influence the market forces that ultimately set the price at which a good or service is bought and sold.
How is gold price per gram determined?
Gold price per gram is determined by the weight of the gold and the current exchange rate. For example, if the current exchange rate is 100 dollars per gram, then one gram of gold would be 100 dollars.
What factors influence consumer towards toothpaste?
the price and the cost
How much is a 14k godg gold chain worth?
The value of a 14k gold chain depends on its weight, design, and current market price for gold. As of October 2023, the price of gold fluctuates, typically ranging from $1,800 to $2,000 per ounce. To estimate the worth, you can calculate the gold content in the chain (14k gold is approximately 58.3% pure gold) and multiply that by the current gold price. Additionally, factors such as craftsmanship and brand can also influence the final value.
What factors influence supply others than price?
demand of the product
What is a Non price factor?
Non-price factors are actions that may influence the behavior of the market price. This is also called as shift factors or determinants that affect the accelerating change.
How much is glod worth?
The price of gold fluctuates daily based on market conditions, demand, and geopolitical factors. As of October 2023, gold is typically priced around $1,800 to $2,000 per ounce, but it's essential to check real-time financial news or commodity exchanges for the most current price. Factors such as inflation, currency strength, and global economic stability can all influence gold's value.
What are the factors that can influence demand for land labor capital entrepreneur?
Supply, demand, price, and cost would be the factors.
How much i one once of gold worth?
As of my last update, the price of gold fluctuates regularly based on market conditions. Typically, one ounce of gold is valued in the range of $1,700 to $2,000, but it’s important to check real-time financial news or market data for the most current price. Factors such as geopolitical events, inflation, and currency strength can all influence gold prices.
What is a non factor?
Non-price factors are actions that may influence the behavior of the market price. This is also called as shift factors or determinants that affect the accelerating change.
What is the average cost of Gold teardrop earrings?
The price really depends on a lot of factors, including where you live, the size of the earrings, the jeweler who designed them, and the current price of gold.
Why is the price of gold and silver decreasing?
The price of gold and silver is decreasing due to factors such as a stronger US dollar, rising interest rates, and reduced demand from investors.
What are the determining factors of the future price of gold?
Some determining factors of the future price of gold are the valuation of other assets and on differences between U.S. data and the rest of the world. This makes trends driven by fundamentals very difficult to understand.
