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The main reasons for the fluctuations in the gold price
Material posted: Publication date: 29-09-2013

Gold is a precious metal that almost never depreciates. Therefore, many investors engaged in speculative operations with metal for the purpose of obtaining a stable income.

Analysts in one voice say that the price of gold is determined by demand, not supply. The fact that extraction of gold is always constant, that is, the metal supply limited volumes of production. The course for the yellow metal is still a large number of factors, including: geopolitical situation in the world, the increase of tariffs for energy carriers, etc.

The rate of gold is set on a daily basis. In our country the authorized body responsible for its establishment, is the Central Bank of Russia. He studies the world situation in the gold market and adjusts its price so that the cost of 1 gram of gold was not to the detriment of the national economy. However, our country can have a significant impact on the global gold market, therefore setting the course for the yellow metal is derived from world prices.

The starting point for the pricing of gold is considered to be the London. It has been several centuries faithfully fulfilled their duties. Change and revision of course to the metal occurs 2 times a day: at 10.30 a.m. (morning fixing) and 15 hours London time (daily fixing). Price is formed on the basis of supply and demand according to 5 banks in the world world, unfortunately, none of the banks from Rascim in this top 5 is not included.

The price for 1 gram of gold is determined in U.S. dollars. The Russian Central Bank focuses on the equilibrium price of London. However, he has to include the costs associated with the transportation of metal, the payment of customs duties, etc. Russia, possessing huge reserves of gold, and failed to liberalize the sale of gold within the state. Therefore, the import of the yellow metal into the country only grows.

It is known that the dollar exchange rate subject to fluctuation caused by political news on the world stage. Any political event or speech of the leader of the party does not go unnoticed. Changing the dollar exchange rate and, accordingly, the price of gold. The objective of investors is to predict the behavior of the gold price. In this case, you can count on a steady income.

Another important factor that has a significant impact on the price of gold is inflation. Experts attribute it to the underlying factor, as it is more or less clear. Inflation leads to release anything Fiat money (Fiat money). However, the volume of gold production remains at the same level, so the price of the yellow precious metal is rapidly grow up. The more the country will be printed unsecured money, the higher the price of gold. The law works in the opposite direction.

We should not forget that even with a constant level of inflation may fall in the prices of gold metal. Most often this situation is caused by speculative games of investors, which is defined by tricks of overpriced. From time to time a speculative bubble bursts and the price of gold demonstrates serious fall.

Gold rate responds not only to events that have already occurred in the international arena, but also on expected future.

It can be concluded that the rate of gold may fluctuate substantially. His behavior has a great influence the political situation in the world, inflation, demand, increase or decrease production volumes, etc. However, gold should be viewed primarily as a long-term investment and not for speculation.


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