Today gold rate is touching the sky. Gold has been a precious metal for mankind for thousands of years. It has made an illustrious relation with mankind for centuries. Gold has served as a money maker till other variety of centuries were made and bought as an investment. Today gold rate has a very high value it is a very reliable kind of asset or wealth. For this reason it is being considered as a hedge against economic fluctuations. The action of buyers based on this principal can enhance the price of gold. To make a prospective purchase of gold it is very essential to know about all those elements that shake the price of gold. This can allow a buyer to predict the accuracy and trends in the rates of gold. In this way one will be able to make a fair and direct investment to earn profits.
Factors affecting today gold rate:
1) The first important factor is a basic one. It depends on the concept of demand and supply in the language of economics. This is a truth for other commodities also. If the demand of gold metal gets enhanced suddenly and merchants are also not able to meet the demands then the prices will enhance. If the production of gold decreases due to strike of miners and its supply diminishes then also the price of gold rate will increase.
2) Policies of central banks are the second factor on which today gold rate is dependant. All banks make investment in gold at the time of inflation. Other policies of interest on gold also affect its prices. A high rate of interest will make all people to make investment in gold currencies. Low rate of interest will enhance the purchase of gold in the market. Today gold rate is also being affected by fluctuation of economical factors in the international market.
Affect of social conditions on today gold rate:
Social condition s very often affects the price of Gold. Today gold rate is being fluctuated by many social circumstances like war between 2 countries, price of gold in terms of international currency and other kind of emergencies. One should be sure of the value and price of gold. People should do their best to accumulate as much as gold as they can. This will help them to meet sudden demands of money by selling gold in the market.