What factors move the price of gold?

What Moves Gold Prices? Correlation to Inflation. Economists Claude B. ... Supply Factors. Unlike oil or coffee, however, gold isn't consumed. ... Central Banks. Hug says the big market movers of gold prices are often central banks. ... ETFs. ... Portfolio Considerations. ... Retaining Value. ... The Bottom Line. ...

What does economic factors affect the price of gold?

Therefore, gold prices can be affected by the basic theory of supply and demand; as demand for consumer goods such as jewelry and electronics increases, the cost of gold can rise. During times of economic uncertainty, as seen during times of economic recession, more people turn to investing in gold because of its enduring value.

How does inflation affect gold?

My high-level thesis for EQX is: Gold benefits from inflation, and even more so in an environment of excessive monetary growth - prevalent today and likely in the future. Gold enhances overall portfolio performance more effectively than other traditional inflation hedges. Gold mining stocks are more volatile and rise (or fall) faster than gold; therefore they carry more risk. More items...

What causes fluctuation in gold prices?

5 Main Factors That Cause Gold’s Value To Fluctuate. Price manipulation, limited supply, peer pressure buying, falling currencies and central bank buying are the top five factors analysts cite when discussing gold price movements. But not all ….