Elements behind Stabilization of Gold Rate in Dubai

In the year 2012 all of us will be hearing about gold rate in Dubai getting stabilized. However the rates of interest will keep on rising. For this reason buyers of gold can expect stability during year 2012. According to diverse kinds of analysis about gold jewelry, the prices of gold are going to be stabilized in the year 2012. One cause about this is that many investors have made themselves safe from the giant of inflation. The business assumption made by market experts is that in the year 2012 the price of gold will be at par by 13%.

Factors affecting Gold rate in Dubai:

Gold rate in Dubai depends on many factors. The prices of gold and dollars move in opposite directions in this place. Sometimes Euro and gold move together. In case if the prices of gold reduces then buyers will see losses in price of gold in the coming future. During last few years Euro and gold have displayed a correlation at a value of +0.52. It is being said that this value of correlation may also rise in the forthcoming time. The trend of gold market in Dubai is not so different like gold markets of European countries. For any kind of major change the rate of interest of gold may rise across the globe. This will not happen in the year 2012. Gold is being considered to be a substitute element for all top rated currencies of the world. The market of Gold has run very well during the year 2009. This price rise will get stabilized during the coming future. With the rise of price of gold in the USA, the gold rate in Dubai will be reduced.

Series of events drive gold rate in Dubai:

There are many elements that have become as contributors to the instability of gold rate in Dubai. Inflation is one such element. It is the main factor that contributes to the structural weakness of a currency. Today people have lost confidence in paper money and other currencies of the world. This has occurred due to financial crisis. All buyers coming to the market of gold are seeking a safe insurance cover against financial crisis. They need a substitute for leading currencies of the world. According to the opinion of gold market experts the period of October to March is the strongest period when buyers come to purchase gold. There is also a chance that conditions of market will come up dramatically with the pace of time. Gold rate in Dubai rises in the market by the fact that gold markets are driven by a series of events.



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