What economic factors affect the price of gold futures??

Question

That basicaly sums up my question. Also are there any production reports or anything that have an effect on the prices of Gold? Thanks.

Answer 1

There are production reports regularly on gold. For example South Africa just made a poor forecast for 2007 production, since S.A. is the worlds largest gold producer, this is a big deal. You can find these reports scattered throughout the web, I personally get a free report from the Chicago Board of Trade (CBOT) which covers gold in addition to other commodities. You can go to their web site and sign up for it.

To answer the factors that move gold prices:

1. Supply and demand. Many experts assign a good portion of the recent run up to the increased members of the middle class in India and China demanding gold jewelery

2. The value of the $ relative to other currencies. Since gold futures in the US are quoted in US $, as the $ falls relative to other currencies, the value of gold quoted in $ goes up.

3. Macroeconomic factors including inflation and the business cycle. Many people see gold as a defensive asset and thus migrate out of stocks in anticipation of poor stock performance and into gold, driving up demand and thus the price.

4. Geo-Political volatility. Since gold is seen as an asset that has value regardless of what happens (think of all the times in history people fled their country and took with them gold as a store of wealth to exchange in their new home), instability in the world often causes people to want gold over other assets.

Answer 2

the fee of gold grew to become into before set by making use of the U. S. government while the greenback grew to become into set on the fee of Gold, yet as quickly as they desperate to get "lovable" and adjusted the backside of the greenback from silver, gold and silver have been traded like all different fabric. With the creation of ETF's and the extra beneficial call for for gold for distinctive motives, that's now like all different commodity and traded on the open industry. The regulation of grant and demand now determines the fee of gold.

Answer 3

if the stocks go up,the price of gold goes down
if the stocks go down,the price of gold goes up

lately the price of gold keeps going up that means time to get
rid of stocks