Factors Affecting Gold Price

Seasonality: Prices of gold coins depend on the season. 

Bad Economic Climate: Economic crisis will increase the price of gold, while a stabilized situation could steady the price of gold as well. The cost of gold is greatly influenced by other market factors also.

Demand and Supply: With its huge tradition and culture of buying and saving gold, India is responsible for 27% of the demand for gold in the world. 

Inflation: In India price of gold coins are greatly swayed by inflation. 

Collector's Coin: If you are into buying mint or bullion coins, then other factors like demand and supply influence its price. Article Source: http://EzineArticles.com/7096515

Factors Influencing Gold Price Rise

Gold, just like any other commodity is driven by the forces of supply and demand. But what gives gold an added advantage is that it is something that people hoard in the time of crisis and because of its high liquidation, its effect on prices is constant. Another factor influencing prices is the way banks manage the gold that they have. The political and economical situation of country also determines the price of gold. The failure of bank in a country, political instability as well as very low or interest rates touching the negative mark can have an impact on the prices of gold almost overnight. The failure of bank can result in instability and therefore the prices of gold will go up, since people will begin to buy and horde for a rainy day. Article Source: http://EzineArticles.com/6947833

Factors Affecting The Price of Gold

The first factor is rather basic and depends on the simple economics of supply and demand. This is true of any commodity.The second factor is the gold and other policies of central banks.  A higher interest rate will lead to people investing in currency, whereas a low interest will increase gold purchase. The third factor is the social conditions prevalent. In times of war, emergencies, the price of gold shoots up as the value of the prevalent currency is in doubt. Since one can be sure of the value of gold, people try to acquire as much gold as they can, pushing up the price of gold. The fourth factor is the state of the economy. If the economy is in the doldrums with the markets performing in a shabby manner like now, prices of gold will increase due to more people choosing to invest in gold.The fifth factor is the value of the US Dollar. Since the dollar is the currency that most people incest in any fall in its value will lead to the prices of gold shooting up. The gold rate has always had this relationship with the Dollar ever since the dollar became the global trading currency.Article Source: http://EzineArticles.com/6782488

Factors Affecting Gold Price