The factors of gold price analyzed as follows

The movement of gold price is mainly influenced by the supply and demand factors. The factors of gold price are analyzed as follows:

1. Supply

If the supply of gold increases, then the price of gold fell according to the law of supply and demand. Conversely, If the supply of gold decreases, then the gold prices rose according to the law of supply and demand. Therefore, any factors of gold supply will affect the gold price.

For example, the new applications of gold mining technology, the discovery of new gold deposits. In this case, the supply of gold increases, gold prices fell. When miner strike, gold prices rose.

2. Demand

If the demand of gold increases, then the price of gold rose according to the law of supply and demand. Conversely, If the demand of gold decreases, then the gold prices fell according to the law of supply and demand. Therefore, any factors of gold demand will affect the gold price.

For example, the Chinese New Year, gold investment boom. In this case, the demand of gold increases, gold prices increases. Conversely, if the demand for gold is weak, the price of gold fell.

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