What are the factors that affect the gold price?

Gold has been considered the most traditional form of investment. There is no one who didn’t invest in gold at this time! In India, it has amazing value, but now, in the UK, people are also thinking about investing in gold. This is the safest choice of investment because it holds amazing value and features that you never find in anything else! Here in this blog, we have mentioned a few factors that affect the gold price at a rapid pace!

Factors Affecting Gold Prices

There are lots of factors that affect the stock market value of gold. Investors are also looking for those factors that cause a rise or fall in the gold price. Here are some common factors that cause a change in the gold price chart.

1. Demand and Supply: The demand and supply of gold have been increasing day by day. The demand and supply of gold play a major role in this. This is not a consumable product, right? Every gold which is mined is still available in the world. The amount of gold mined is increasing day by day, and this is why the value is increasing. As per the demand and supply of the gold, it decides the hike and loss in price!

2. Inflation: The inflation rate rise when the currency value decreases. So many investment avenues fail to deliver inflation-beating returns. This is why most people started investing in gold to secure their future. This is safe because it doesn’t affect by fluctuations in the value of the currency.

3. Interest Rates: The price of gold is increasing day by day, but sometimes it also fluctuates due to the interest rate. The value of gold is inversely proportional to interest rates. When the interest rates fall, people do not get good returns which directly affects the price of gold.

4. UK Jewelry Market: The gold jewellery market of the UK also plays an integral role in festivals and weddings. During festivals and wedding seasons, the price of gold increases, but on other days, it continuously fluctuates. So, basically, the market is dependent upon the on & off-season.

5. Currency Fluctuations: If we talk about the international market, gold is traded in USD. But when it came to other countries like India, the price changed and converted into INR. So, these fluctuations can affect the price of gold and hence the selling price.

Summary: By considering the above factors now, you can clearly understand why the value of gold price per gram UK fluctuates on regular days!