Blogging On Finance

Understand how gold prices are affected by changes in interest rates, inflation, central bank decisions, and crises. Gold is notable for its dual role as a precious metal and an investment. There are more significant factors influencing the development of gold demand and, therefore, its price than those affecting the growth of stocks. Though the gold price has tended to trend upward in recent years, it is also subject to frequent fluctuations. The gold price is significantly influenced by long-term, medium-term, and short-term factors. Global and national economic growth are among the more long-term influences. On the other hand, investors primarily affect the gold price over the short term through geopolitical crises and large-scale futures trading activity. Fundamental and psychological factors influence gold prices to a large extent. So let us look at the six most common factors that affect gold prices.   1. Central Bank Reserves Central banks hold gold and paper currencies in reser