Liquidity has been one of the main drivers of the current commodity market price cycle, and especially so in the precious metals segment. With interest rates rising, concerns have arisen over the impact a tighter monetary may have on commodity prices.
Although nominal interest rates are relevant for financial markets, inflation adjusted real interest rates are arguably more important as they capture the true funding costs. Generally real interest rates and gold prices are inversely related.
According to experts, there is the interplay of the real economy and the financial markets. For instance, when economies are expanding, upward pressure on general prices persists. In an effort to slowdown growth, central banks start to increase interest rates.
However, although monetary authorities raise nominal funding cost, real interest rates may still be falling and even turn negative owing to inflationary pressures (which has been the case in the current cycle, assert experts) and this keeps the cost financing investments (such as gold) low.
2006-06-23 00:16:56
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answer #1
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answered by Bond 000 3
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Actually it is a global phenomenon. It is happening in all countries. Gold is a very safe investment right now and that makes gold in high demand so therefore the price of gold rises.
2006-07-06 17:55:13
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answer #2
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answered by Anonymous
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Cap Moons can not be defined by Dad issues. My Dad became /is the appropriate,he has Cap Moon too. there have been greater females in my kinfolk than boys and pa raised the bar on any destiny adult males in his females existence. initially he enjoyed ,respected my mom and it became obtrusive he enjoyed her,and he made particular his females understood how efficient we've been. We had a kinfolk organisation,so in comparison to many,the youngsters have been scheduled in to artwork as properly.I wasn't initially happy until he began giving me a paycheck at 9 years previous. So, my Dad became continually around coaching us approximately organisation.It became certainly a exact kinfolk . I had super mom and dad those definition you study do no longer define my Moon or sunlight,My kinfolk as properly as my outdoors community became very unique,my little ones incorporates many suggested influential functionality fashions that have been component of our lives. As a newborn you particularly do no longer see how blessed you're,yet as an person ,i could no longer have asked for a greater physically powerful beginning..I discovered a lot from my Dad and he took the time to make particular,we've been waiting for the worldwide and had the surprising kit for fulfillment. Cap Moon for me isn't approximately divorce Oh My guy is an identical, Libra sunlight and Cap Moon as my Dad,no longer intentionally because of the fact we met as infants..greater like soul friends.
2016-12-08 11:52:56
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answer #3
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answered by campa 4
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Well like trading in stocks gold trading has come into vogue. Plus the loss of confidence in US dollars, the oil price increase and the chinese and japanese people too going in for gold acquisition and the dwindling prospects of gold mines all added to it increase.
2006-06-23 00:19:30
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answer #4
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answered by THATHA75 6
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in India gold jewelery has always been pretty importnat and i believe they often buy gold to make jewelery when gold is cheap and then melt it down and dell it when the gold price rallies. and traditionally gold has been a hedge when the US $ has been weaker. And many governments useit to back-up their own currency
2006-06-30 05:15:59
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answer #5
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answered by Kalahari_Surfer 5
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Because, mistakenly, a lot of Indians put faith in GOLD, which has gone down in value. If they knew what they were doing they wouldn't go broke would they?
2006-06-23 00:09:47
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answer #6
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answered by djoldgeezer 7
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International market's influence...
2006-06-23 00:54:25
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answer #7
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answered by mrgreekgod 3
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I think Bond has the answer
2006-06-23 00:18:59
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answer #8
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answered by antiekmama 6
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