Why is the price of gold rising?
As we covered yesterday, the price of gold has now moved to well over $1000 which is an all-time high for the precious metal. It would appear that various factors have come into play to push the gold price to these levels, which is a culmination of an upward trend which has now lasted a total of eight years. So what exactly is pushing the price of gold higher and higher?
A general weakness in the US dollar is seen by many experts as one reason why the price of gold continues to rise, with those who would traditionally have invested in the greenback now investing in gold as a hedge against the currency rate in the future. As you might have guessed, there has also been significant speculation in the market regarding the worldwide economy, inflation and other issues which have pushed more and more hedge funds and investment funds into the "safe investment" of gold. Inflation itself is also a major factor because gold has for many years been seen as a counter measure against high inflation, something which is in the minds of investors to this day.
All in all it would appear there are still many reasons why the price of gold may yet move higher but at some point profit takers will come into play and some investors will lose their "bottle".
Share this..
Related stories
Mobile banking set to be most popular form of banking
15/06/2015 Mobile banking is set to take over computer banking as the most popular way to bank, according to the British Bankers Association. Research has found that customers throughout the UK are set to check their current account a record 895 million times on their mobiles in 2015, which will beat the 705 million predicted for computers, 427 million branch visits and 64 million telephon...
Read MoreFinancial wellbeing improved only 0.2% in five years
31/03/2015 Official figures from the Office of National Statistics (ONS) have shown that the financial wellbeing of households has only improved by 0.2% in the last five years. The Real Household Disposable Income (RHDI) is a measure that records household income after tax and is adjusted for inflation.The RHDI did increase by 1.9% per head in December 2014, but the measure is only 0.2% hig...
Read MoreAre Money Markets Stalling Again?
The shares of media outfit Informa suffered a 9% fall yesterday with investors concerned that a much rumoured bid approach may hit trouble with corporate finance still tight in the money markets. A multi-billion pound deal involving the acquisition of shares in the company and refinancing the debts of £1.25 billion looks more unlikely by the day. After Providence Equity Partners and Carlyle Gro...
Read MoreSecured lending continues to increase
09/04/2015 Secured lending in the UK has seen its 40th consecutive month on month increase, as the latest Secured Loan Index from Loans Warehouse shows an increase of 10.5% in February. In February, lending figures reached £64,375,673 for secured lending. This is one of the highest levels of lending since October 2008, despite it being one of the shortest months of the year, and was an incr...
Read MoreHouse price inflation slows
Annual house price inflation in Britain eased during March, government housing data has shown.Official figures released today reveal that during the third month of the year house prices rose 10.9 per cent compared to March 2006.But the corresponding annual house price rise recorded in February stood at 11.8 per cent.In London meanwhile annual house price inflation was 13.9 per cent in March, more...
Read More