Gold isn’t just an object of beauty and monetary value in current economic scenario. Gold has become a hot investment opportunity in the last few years, and more people are seriously considering making gold a part of their portfolio. Trading of gold and is commonly known as bullion trading.
Being the leading consumer and importer of gold in the world, Indian bullion market has become very promising sector for the investors as a large number of people believe that investing in gold is beneficial. However, there are certain pros and cons of investing in this yellow metal for which ‘Moksha Stocks’ suggests to understand the several factors mentioned below, that drive the price of gold.
The value of US Dollar
The first factor that governs thegold price todayis the United States Dollar. A stronger U.S. dollar will keep the gold prices stable and low. The dollar has not remained as powerful and promising than ever, owing to this weak price of Dollar in the global market, the price of the bullion is soaring
Bank Reserves and mining companies
Central banks and mining companies usually hold large reserve of gold as a buffer against inflation. They buy and sell this precious metal according to the overall economic scenario. Due to the frequent transactions done by these bodies, the price of gold gets affected. Other monetary policies of central banks also have an impact on the price of gold.
Demand and Supply
Gold prices are essentially determined by the demand and supply of it in the market. The price of the gold rises due to its high demand and finite supply. Gold is also used for industrial purposes. In light of the supply, persistent increase in demand causes the price to go up and vice versa.
Bullion is one of the major indicators of the wealth of the country. And ‘Moksha Stocks’ can provide best tips on bullion investment to those willing to invest in this market which gives promising returns.