Why price of gold decreasing these day?

Answer 1

There are a number of governments in Europe which are under heavy economic pressure as a result of their high levels of debt, and continued deficit spending. The island of Cyprus in particular has come very close to bankruptcy and took drastic measures to avert it. Greece, Italy, Spain, Portugal, and Ireland are all in trouble. It is expected that some of these governments will sell some or all of their gold reserves, in an effort to deal with the current crisis. If this happens, putting large amounts of gold up for sale will alter the balance of supply and demand, which determines the gold price. If supply goes up, price goes down. And purely in anticipation that this will happen, the price is already going down. After all, if you expect that the price of gold is going to go down, then it makes sense to sell it now, before the price gets any lower. It is really a self-fulfilling prophecy. If enough people expect the price of gold to go down, then the price will go down.