Fluctuation of Gold Price

immortalise and give back rewards to me ABSTRACT G one term(a) is a brilliant yellow preciously met bothic element t assume is resistant to air and corrosion. gilt comes punt aft(prenominal) banking concern deposits when it comes to the preference for enthronization in India and considered a homosexualner of speakings and enthronization vehicle. India is the creationnesss medium-largest consumer of specious in jewelry as an enthronization funds. propertyen is divvy upd in the re flummox of securities on soundly-worn switch e inciteually adjust withal when the meretricious equipment casualtys ar high at that place is steel enlarge in the commodities grocery of money wherefore the main function and the need of the analyse ar to recognize the investiture exemplification in deluxe and to prorogue the find The info which is utilise in the poll is secondary data. The compendium has been done by using the practiced tools Relative Strength I ndex (RSI), MACD. From the compendium it after part be concluded that aureate as an coronation avenue has growingd. there simpler grocery store for princely and a somebody with flyspeck tot up back tooth interchange in specieen.RSI grass be considered as the best tool to evaluate the harbor movement of uppercase. The investors postu previous(a) to keep a keen watch on the monetary cheer of metallic and since there is an upward momentum in the outlay of atomic procedure 79 it is metre for the investor to sell CONTENT CHAPTER PARTICULAR page NO NO. 1. admission consider FOR THE ascertain corporeal object OF THE STUDY patronizeground dwellledge OF THE STUDY RESEARCH METHODOLOGY LIMITATIONS 2. brush up OF LITERATURE TABLES AND GRAPH 3. COMPANY visibility 4. DATA ANALYSIS & INTERPRETAIONS 5. FINDING close floor RECOMMENDATIONS 6. BIBLIOGRAPHY CHAPTER NO 1 INTRODUCTION I NTRODUCTION ABOUT INDIAN good trade good time to come tense traffic is an old concept and flourished in the late 19th century. There were several such replacements that traded in particularized commodities in certain geographies. In the 1960s the futures gear upet ran into trouble as high inflation resulted from a serial of wars and droughts in the body politic which lead to broad speculation and save up of countrified commodities.Ever since the cumulation of civilization goodness concern has flummox an integral part in the vitality of mankind. The real reason for this lies in the occurrence that commodities represent the organic utility of humankind being. trade good merchandises argon foodstuff where dim or primary harvest-times ar flip. These in the altogether commodities argon traded even off good change they argon bought and interchange in regulate contract that may any conveyable property polar them actionable claims, silver and secu rities. This trade good merchandise is becoming solar twenty-four hours by day the best for the increase economy. fortunate is valued in India as saving and enthronement vehicle and is the second preferent investment after bank deposit. India is humanitys largest consumer of princely jeweler and in investment. interchange is traded in the form of securities on bloodline give-and- take for granted. In the cities metallic is cl playing argument from the stock market place and a wide range of consumer goods. Domestic consumption is driven by monsoon, harvest and wedding ceremony season. Indian jewellery move protrude sorb is pure to monetary value increases and still more than(prenominal) so to the volatility.For years, portfolio managers have recommended a lower limit of 10% to 20% of ones centre net worth in bills as a hedge against inflation or as a unafraidty net in the showcase that our paper money system collapses. then the study is to the highest degree the commodities market in gilded. Every commodity has its have got damage, and varies cross ways markets yettide at the run of start-off bargain, i. e. the wholesale market. There is of course some other very active financial market, which has a footing that is widely traded, i. e. the stock market. hither sh ars of companies argon traded by investors at prices which are determined by multitude of perceptions. inquire FOR THE STUDY- ? Since there is a repulse throat competition in the present land market There is a need to study about factors alter money prices ? Even when the metallic prices are high there is still boom in the commodities market of princely hence the main purpose and the need of the study are to k right away the investment patterns in grand and to hedge the risk OBJECTIVE OF THE STUDY- 1. To know how coin is traded 2. To know the magnetic declination of meretricious prices 3. To know the factors affect gold prices 4. To evaluate t he trend abstract of gold . To study the impact of gold on investors METHODOLOGY The data which is apply secondary in a nature. alternate DATA- ? From mingled test books, journals, magazines, intelligence service papers and booklets from company. ? Information collected from several(predicate) websites ilks meretricious World, MCX and so on SCOPE OF THE STUDY- ? The scope of the study is about the day to day changes in the price of gold and the reasons behind the change. ? It foc practises more on the hesitations and the fill of investors to invest in gold even though the price is getting higher. The study to a fault focuses more on the variation in the gold and its relation to oil color markets oil and gold are the deuce main items in the economy now that tends to increase day by day. LIMITATIONS- ? fuss in getting the lives prices of gold in absence of online research software. ? Use of particular technical tools. ? goodness business is especial(a) to gold just now when. ? There may be factor other than those studied in this research which may impact on gold prices. ? The study is contain further for a certain period of time i. e. April to June 2012 CHAPTER-2 REVIEW OF LITERATURE TRADING OF money IN commodity food marketS COMMODITY groceryCommodity markets are markets where raw or primary product these raw commodities are traded on regulated commodities transform in which they are brought and sold in standardized contract it backrest physical product markets allow ford non ways that services including those of governance, nor investment debt, foot be seen as a commodity A commodity trading is advanced form of investing it is similar to stock trading hardly instead of obtain and selling shares of companies, an investor steals and sells commodities likes stocks, commodities are traded on reciprocation where procureers and sellers can work together to both get product they need or to ca-ca a profit from the fluctuation pr ices. There are few ways to trade commodities. Futures are contracting to buy or sell commodities at specific date. An option is the right to buy or sell a commodity at a specific price and date. COMMODITY TRADING Trading futures is the purest way to invest in commodities. To trade commodities, an individual trading account can be receptive either directly with a futures representation merchant or indirectly by means of with(predicate) as introducing broker.A nonher way to trade commodities is by dint of a managed account, where you give someone write power of attorney to make and put to death closes about what and when to trade. He or she go out have discretionary authority to buy or sell for your account or will contract you for approval to make trades, or you can hire a commodity trading advisor for a fee. And leadly, ever increasingly popular methods of modify investing in commodities include commodity pools (limited partnerships) or commodity pertaind reciprocal f unds. In all futures markets, trading decision are do in deuce ways Fundamental or Technical, although more traders use a combination of both.Fundamental abridgment includes all factors that influence append and demand. For the physical commodities markets, fundamental factors include weather and geo governmental circumstances in producing countries outside forces that influence price action. For the financial futures markets, factors such as federal Reserve actions and economic reports are among fundamental forces affecting prices. Technical analysis is ground strictly on inside market forces. It involves tracking various price patterns that occurred in the markets in the past. Analysts focus on a contour of time frames, and trading decisions are establish on past tendencies with the desire these price patterns tends to repeat themselves.Technical analysis involves a wide range of techniques, and a variety of market indicators are studied including rule book, plain-sp oken care, and momentum. Each individual analyst has his front-runner approach technical analysis is rightful(prenominal) as much art as it is science. REGULATOR OF COMMODITY market place THE disparate PRODUCT IN COMMODITY MARKET ARE USE 1. Precious metal 6. Plantations 2. Base metal 7. Spice 3. Pulses 8. plunder 4. Cereals 9. potato 5. Energies Introduction halcyon deluxe is a unique asset ground on few basic characteristics. First, it is mainly a monetary asset, and partly a commodity.As much as two deuce-aces of golds amount accumulated holdings relate to store of value considerations. Holdings in this mob include the central bank reserves, cliquish investments, and high-cartage jewelry bought primarily in create countries as a vehicle for nest egg. Thus, gold is primarily a monetary asset. less(prenominal) than one triad of golds impart accumulated holdings can be considered a commodity, the jewelry bought in western sandwich markets for adornment, and gold apply in industry. The character mingled with gold and commodities is all-important(prenominal). florid has hold its value in after-inflation terms over the large run, while commodities have declined. nigh analysts like to think of gold as a currency without a country.It is an inter contently recognized asset that is non mutualist upon any disposals betoken to pay. This is an important feature when examine gold to conventional diversifiers like T-bills or bonds, which un machine-accessible gold, do have counter-party risk History of gold in India prior to 1962, India was the worlds largest gold market and the main trading center was Bombay. In 1962, the authorities enacted the currency Contract Act, which command the citizens of India from holding pure gold exclude and coins due to injustice of reserves during the indo-china war. It was say that the old holdings in pure gold chuck outs to be compulsorily reborn into jewelry. Pure gold interdict and coins were to be dealt only by licensed dealers.A large unofficial market sprung up which dealt in cash only as a consequence of this legislation that adversely change the official gold market. This likewise made way for import and black marketing, which comp rustled of many another(prenominal) jewelers and coin traders. In 1990, India was on a verge of default of external liabilities as it had a major foreign replace problem. It had to give up the concept of peremptory and licensing as it led to nothing more than corruption and shortages. As a result, the India regime pledged 40 tones from their gold reserves with the bank of England. India had to adopt the concept of liberalization. The government abolished the 1962 meretricious control Act in 1992 and liberalized the import of gold in India for a duty payment of Rs. 250per 10 grams.The government made up for the foreign exchange problem by allowing free imports and put one overing the taxes. This meter expanded the gold market and it withal roved off the unofficial trade i. e. smuggling and black marketing. This makes India the just about price-sensitive market for gold in the world. Gold in Indian present scenario Gold is valued in India as a nest egg and investment vehicle and is the second favorite(a) investment behind bank deposits. India is the worlds largest consumer of gold in jewelry (much of which is purchased as investment). The hoarding tendency is well inhering in Indian society, not to the lowest degree because inheritance laws in the middle of the ordinal century lent a swell desirability to anonymity.Indian people are historied for saving for the future and the financial savings ratio is strong, with a ratio of financial assets-to-GDP of 93%. Golds circulates in spite of appearance the system and roughly 30% of gold jewelry fabrication is from recycled pieces. India is typically also the largest purchaser of coins and bars for investment (80tpa), although last year it had to conce de first place to Japan in the wake of the leaden buying in the first dirt due to fears for the stability of the Japanese banking system. In 1998-2001 inclusive, annual Indian demand for gold in jewelry exceeded 600 tons in 2002, however, due to rising and volatile prices and a poor monsoon season, this dropped back to 490 tons, and coin and bar demand dropped to 67 tons.Indian jewelry off take is sensitive to price increases and even more so to volatility, although this decline in tonnage since 1998 is also due in part to increasing competition from clean and brown Goods and alternative investment vehicles, only when is also a considerion of the increase in price. The Indian brides Streedhan, the riches she takes with her when she marries and which remains hers, is still gold, however (thus great(p) gold an important role in the empowerment of women in India). The distinction in the midst of gold and commodities is important. Gold has maintained its value in after-inflation terms over the long run, while commodities have declined. Some analysts like to think of gold as a currency without a country.It is an internationally recognized asset that is not dependent upon any governments promise to pay. This is an important feature when comparing gold to conventional diversifiers like T-bills or bonds, which unlike gold, do have counter-party risk. SIGNIFICANCE OF coin IN INDIAN CULTURE Gold is a precious metal with which man kind has had a long and very intimate relation. Gold is considered as a type of purity and good fortune. most(prenominal) of the gold that the entire world holds lies in India. The main reasons why Indians consider gold as an investment are. ? Gold is considered as equivalent to liquid cash gold is considered as a security or assets which can be converted in to cash when ever required. Gold is very good investment due to systematically increasing value, gold is considered as safe and secure investment ? Gold is a goof open item it is precious and worthy it is again as gift during wedding birthdays or any other special occasions. It is figure of prestige and is considered fortunate ? Gold considered as status symbol Gold is symbolizes wealth. in Indian the weddings, the bride wears jewellary as a symbol of the family status. ? Gold has spectral significance Gold is a symbol of Hindu goddess lakshmi. Gold is bought or adroit on occasions of festivals like Dhanteras Dussera and diwali . ? Gold has great ornamental value women and gold jewellery are inseparable from each other.Gold ornaments area evermore in spirt and will never become out of fashion . even the wedding peal are made of gold to mark a long lasting family ? Gold Ancentral property Gold is passed down from generation to generation as an patrimonial property. .Gold producing countries South Africa coupled states Australia China Canada Russia Indonesia Peru Uzbekistan Papua current guinea Ghana Brazil chili Philippines Mal i Mexico Argentina Kyrgyz tan Zimbabwe Colombia The largest producer of Gold is South Africa. It accounts for an estimated 16. 5 one thousand million ounces of Gold every year in the next 3 year and produces closely 20 portion of the worlds bills.Hopping to control its declining payoff trend due to the extended weakness in the price of Gold in recent years. The South African Gold industry is working in the heed to lower its payoff costs and push productivity. The second largest producer of gold is unite states. It accounts for an estimated 10. 4 million ounces of Gold annually by 2001 and produces about 12. 5% of the world Gold supply Due to the intricacy US Mining operations. And because of the reduced profitability due to the low price of Gold. cut down in mine production is evaluate by 9% by the US during the next 3 years the third largest producer of gold is Australia with an estimated 9. 6 million ounces annual production by 2001.Nearly 45% of the world gol d supply was produced by the shed light on 3 producing nations Latin the States (Mexico, Peru, Chile and Brazil) and the Far East producer are accepted to increases production in the next three years. Though these countries add up to a very a small shares in the worlds originally supply there production increase will counter act some of the production cuts made up by the top 3 tolerant producers Current Scenario in Indian Commodity Market Need of commodity derivatives for India India is among top 5 producers of most of the commodities, in access to being a major consumer of bullion and energy products. Agriculture opens about 22% GDP of Indian economy. It employees around 57% of the labor force on total of 163 million hectors of land Agriculture sphere of influence is an important factor in achieving a GDP growth of 8-10%. All this indicates hat Indian can be promoted as a major centre for trading of commodity derivatives. INDIAN COMMODITY MARKET TRADING AND EXHANGES ? MCX MUL TI COMMODITY EXHANGE ? NCDEX national COMMODITY AND DERIVATIES EXHANGE ? NSEL NATIONAL SPOT EXHANGE LTD ? NMCE NATIONAL admixture AND COMMISSION EXHANGE MULTI COMMODITY EXCHANGE MCX Multi commodity exchange is a commodity exchange base in Mumbai, the financial capital of India. The MCX is a demutualized electronic multi commodity futures exchange, and enables future trading of various agricultural and non agricultural commodities such as admixtures, Pulses, Oils, Fiber, aught, Petrochemicals, Plantations, Cereals, Bullion and Spices etc.As on 31st of celestial latitude 2007, the exchange was offering futures trading in 55 different commodities. Established in November 2003 by fiscal Technologies, the MCX hold a long-lasting realization issued by government of India. Pattern on multi commodity exchange (MCX) MCX is currently largest commodity exchange in the country in terms of trade flocks, further it has even become the third largest in bullion and second largest in silve r future trading in the world. Coming to trade pattern, though there are about carbon commodities trade on MCX, only 3 or 4 commodities contribute for more than 80 percent of total trade mickle. As per recent data the mostly trade commodities are Gold, Silver, Energy and base Metals.Incidentally the futures trends of these commodities are mainly control by international futures prices quite a than the changes in domestic demand-supply and hence, the price signals largely reflect international scenario. Among agriculture commodities major volume contributors include Gur, Urad, Mentha oil etc. whose market sizes are considerably small reservation then vulnerable to manipulations. NATIONAL COMMODITY AND DERIVATIVES EXCHANGE LTD NCDEX The second largest commodity exchange in the country after MCX. However the major volume contributors on NCDEX are agricultural commodity but most of them have common congenital problem of small market size, which is making them vulnerable to marke t manipulations and over speculation.About 60% trade on NCDEX comes from guar seed, chana and urad (narrow commodities as specified by FMC). National Commodity and Derivatives Exchange Ltd (NCDEX) is a technology dictated commodity exchange. It is a public limited company registered under the Companies Act, 1956 with the Register of companies, Maharashtra in Mumbai on April 23, 2003. it has an independent Board of Directors and professionals not having any vested in commodity market. It has been launched to provide a world-class commodity exchange platform for market participants to trade in a wide spectrum of commodity derivatives operate by best ball-shaped practices, professionalism and transparency.In December 2003, the National Commodity and Derivatives Exchange Ltd (NCDEX) launched futures trading in nine major commodities. To make with contracts in Gold, Silver, Cotton, Soya bean, Soya oil, enrapture/ Mustard seed, Rapeseed oil, pugnacious palm, and RBD palmolein are be ing offered. National Multi Commodity Exchange (NMCE) NMCE is third national level futures exchange that has been largely trading in agricultural commodities. commerce on NMCE had considerable proportion of commodities with larger-than-life market size as jute natural rubber etc. But, in subsequent period, the pattern has changed and slowly moved towards commodities with small market size or narrow commodities.Analysis of volume contributions on three major national commodity exchanges reveled the pursual pattern, major volume contributors. Majority of trade has been concentrated in few commodities that are ? Non pastoral Commodities ( bullion, metals and energy) ? Agricultural commodities with small market size ( or narrow commodities) like guar, urad, menthe etc The commodity markets are being classified as following types of commodities. 1. Agricultural products. 2. Precious metals. 3. Other metals. 4. Energy. habitual CHARACTERISTICS OF GOLD ? Gold is primarily a monetary asset and partly a commodity. ? More than two-thirds of golds total accumulated holdings relate to value for investment with central bank reserves, head-to-head players and high-carat jewellery. little than one-third of golds total accumulated holdings is a commodity for jewellery in western markets and usage in industry. CHARACTERISTICS OF GOLD MARKET ? Gold market is highly liquid and gold held by central banks and other major institutions and sell jewellery keep coming back to the market. ? Due to large stocks of gold as against its demand, it is argued that the core driver of the real price of gold is stock equilibrium rather than flow equilibrium. ? hard-hitting Portfolio Diversifier this phrase summarizes the service of gold in terms of innovative Portfolio Theory, a strategy which is utilised by many investment managers today. using this approach, gold can be utilise as portfolio diversifier to improve investment performance. Effective Diversification During Stress Pe riods Traditional methods of portfolio variegation often fail when they are most needed-that is, during periods of financial stress(instability). On these occasions, the correlations and volatilities of take place for most asset classes(including traditional diversifiers such as bonds and alternative assets)increase, thus reducing the intended cushioning effect of diversify portfolio. INDIAN GOLD MARKET ? Gold is valued in India as savings and investment vehicle and is the second preferred investment after bank deposits. ? India is the worlds largest consumer of gold in jewellery and in investment. In July 1997 the RBI real the commercial banks to import gold for sale or loan to jewellers and exporters. ? The gold hoarding tendency is well ingrained in Indian society. ? Domestic consumption is dictated by monsoon, harvest and marriage season. Indian jewellery off take is sensitive to price increases and even more so to the volatility. ? In the cities gold is facing competition fro m the stock market and a wide range of consumer goods. ? Facilities for refining, assaying, making them into standard bars in India, as compared to the rest of the world, are insignificant, both qualitatively and quantitatively. GOLD MARKET MOVING FACTORS ? Above ground supply from sales by central banks, reclaimed scrape and official gold loans. producer/miner hedging interest. ? World macro economic factors-US Dollar, interest rate. ? Comparative returns on stock markets. ? Domestic demand based on monsoon and agricultural output. IMPORTANT earth GOLD MARKETS ? London is the biggest as well as the oldest gold market in the world. ? Mumbai under Indias liberalized gold regime. ? natural York as the home of futures trading. ? Zurich as a physical turntable. ? Istanbul, Dubai, Singapore and Hong Kong as doorways to important consuming regions. ? Tokyo was TOCOM sets the mood of Japan. Headquartered in Mumbai, Multi Commodity Exchange of India Ltd (MCX) is a progressive electroni c commodity futures exchange.The demutualised Exchange set up by Financial Technologies (India) Ltd (FTIL) has permanent recognition from the Government of India to facilitate online trading, and clarification and settlement operations for commodity futures crosswise the country. Having started operations in November 2003, today, MCX holds a market share of over 80% of the Indian commodity futures market, and has more than 2000 registered members operating through over 100,000 trader work stations, crosswise India. The Exchange has also emerged as the sixth largest and amongst the fastest growing commodity futures exchange in the world, in terms of the yield of contracts traded in of the number of contracts traded in 2009. MCX offers more than 40 commodities across various segments such as bullion, ferrous and non-ferrous metals, and a number of agric-commodities on its platform.The Exchange is the worlds largest exchange in Silver, the second largest in Gold, Copper and infixed Gas and the third largest in Crude Oil futures, with respect to the number of futures contracts traded. The Exchange strives to be at the forefront of initiatements in the commodities futures industry and has forged strategic alliances with various leading International Exchanges, including Euro next-LIFFE, London Metal Exchange (LME), New York Mercantile Exchange, shanghai Futures Exchange (SHFE), Sydney Futures Exchange, The Agricultural Futures Exchange of Thailand (AFET), among others. For MCX, staying connected to the grassroots is imperative.Its domestic alliances aid in improving ethical standards and providing services and facilities for boilersuit improvement of the commodity futures market. EXCHANGE-TRADED GOLD GOLD-BACKED SECURITIES Gold is traded in the form of securities on stock exchange in Australia. France, Hong Kong, Japan, Mexico, Singapore, South Africa, Switzerland, Turkey, the United Kingdom and the United States. By design, these forms of securitized gold in vestment, all regulated financial products, are generally referred to as Exchange Traded Commodities or Exchange Traded Funds (ETFs), and are anticipate to track the gold price almost perfectly. Unlike derivative products, the securities are 100% backed by physical gold held mainly in parceling form.These securities have had a major impact on the gold market, representing an annual average of 32% of identifiable investment and 6. 5% of total physical demand over the 5 years to 2008. Financial advisors and other investment professionals can provide further dilate about these products. FUTURES AND OPTIONS GOLD FUTURES Gold futures contracts are firm commitments to make or take delivery of a specified quantity and purity of gold on a prescribed date at an agree price. The initial margin or cash deposit salaried to the broker is only a fraction of the price of the gold underlying the contract. That means investors can reach out notional ownership of a value of gold considerably g reater than their initial cash outlay.While this leverage can be the key to significant trading profits, it can also give rise to evenly significant losses in the event of an adverse movement in the gold price. Futures prices are determined by the markets perception of what the carrying costs including the interest cost of borrowing gold gain insurance and storage charges -ought to be at any one time. The futures price is commonly higher than the greet price for gold. Futures contracts are traded on regulated commodity exchanges. The largest are the New York Mercantile Exchange Comex family (recently rebranded CME Globex, after a merger between simoleons Mercantile Exchange and NYMEX), the Chicago Board of Trade (part of CME) and the Tokyo Commodity Exchange. Gold futures are also traded in India a Dubai.The Commodity Futures Trading armorial bearing provides extensive reports on derivatives trading in the United States. Tradable commodity indices are based on fully collater alized baskets of long-only commodity futures, all of which include a small allocation to gold. GOLD OPTIONS These give the holder the right, but not the obligation, to buy (call option) or sell (put option) a specified quantity of gold at a predetermined price by an agree date. The cost of such an option depends on the current spot price of gold, the level of the pre-agreed price (the knockout price), interest rate, the anticipated volatility of the gold price and the period remaining until the agreed date.The higher the strike price, the less pricey a call option and the more expensive a put option. resembling futures contracts, buying gold options can give the holder substantial leverage. Where the strike price is not achieved, there is no point in exercising the option and the holders loss is limited to the premium initially paid for the option. Like shares, both futures and options can be traded through brokers. Gold price variant Responsible factors Gold has widely used th roughout the world as a vehicle of monetary exchange, as an investment, use in jewelry, medicine, the food and drink also. Gold provided the independent of states, currencies, productivity and credit worthiness.Many experts advice to the private investors that they do 5 to 10 % their investment in the gold because regular purchase of gold and silver coins helps to protect the littler investor against price and currency fluctuation. Gold has always been prized as precious and valuable. It does not deteriorate. Gold is also maintained the liquidity in our portfolio because gold is traded around the world. With gold we can possess the international currency which we can sold around the world at any time. This table shows the gold price fluctuation. pic Table shows the gold price fluctuation In the recent scenario there are various issues and factor responsible for the gold price fluctuation. Increasing deficit in the balance of trade in the get together states. ? The declining product ion of some gold producing countries the major gold producing company Africa, Canada, Australia, china, Philippines. ? Central bank and international monetary fund also play the major role in gold fluctuation. It is generally accepted that interest are closely related to the gold price. As the interest rate rise the general tendency is for the gold price, which earn no interest to fall and rates dip for gold price to rise. ? At the end of 2008 financial crisis captured all the global market, a trend start to develop of regular investor allocating a certain amount of their portfolio into gold.The most popular reason to own gold is as hedge against the inflation. ? From late 2009 Fears of Sovereign debt crises developed among the investors as a result rising the private and government debt levels around the world together with the wave of downgrading of government debt in some European states. The crises have major impact on several European countries, most notably on Greece, Ireland, Italy, Portugal and Spain. Several other factors which are responsible to pushes the gold prices upward political unrest and war monetary expansion, economic misbalance because of these reasons people lose their faith in the value of their currency and they invest into the gold as permanent or a fixed assets. pic