Top Factors That Affect Gold Prices
Gold prices have continued to grow steadily over many years. While the inflation is just one of the reasons for high price of gold, there are many other factors that affect the gold prices. Here are some of the important factors –
- Seasonality – Prices of gold depends on the season. During festivals and spring season, the prices of gold are usually higher since many people buy and gift them to their partners and friends.
- Economic Climate – During economic crisis, the price of gold will increase to stabilize the situation.
- Demand and Supply – In many cultures, buying and selling gold is related to their traditions. With the demand of the precious metal increasing around the world, the prices of gold will increase. While India is responsible for about 27% of the demand for gold in the world, Brazil and China are also entering the gold market.
- Inflation – Many investors think of gold as an inflation hedge. When inflation increases, they lock their money in gold. When the demand for gold is high, the prices also increase.
If you are looking to buy gold, it is best to check the gold prices on the day itself since they fluctuate almost on a daily basis.