Gold is used as a standard of value for currencies all over the
world. The price of gold gets stated as a currency value, often in U.S.
dollars, and the price of gold can fluctuate with market conditions.
What influences the price of gold
in the current marketplace? Below are ten significant influences on
gold price fluctuations that any investor with an interest in gold
trading should understand. Because gold prices tend to rise when people lack confidence in governments or financial markets, it often gets called a crisis commodity.
World events often have an impact on the price of gold because gold is
viewed as a source of safety amid economic or geopolitical tumult. For
example, the price of gold spiked right after the Russians moved into
the Ukraine as people became uncertain about geopolitical stability in
the region. In other cases, military action may actually increase
reassurance with geopolitical situations. For example, the gold price
softened at the beginning of Gulf War I. The bottom line is that
political chaos equates to more interest in gold as a safe haven.
