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| Gold price declining |
From the past few days there is a severe decrease in gold price which cannot be seen from the last 10 years. This falling may be due to different reasons but the main reason is rise in the dollar due to the economic crisis in Europe.
The dollar has also moved on the hope that the US economy is urgency from its crisis, which could push them gently through the Federal Reserve to withdraw the package expected than earlier.
Cash gold is not interested on weakening US market futures and jumped as much as 1 percent on wednesday as buyers hold up gold bars, coins withheld when prices hit their weakest levels in more than two years.
Investors has to know what makes the falling of Gold price and how long will it last?. A considerable amount of selling of gold exchange trade funds holdings, forced the ETF managers to sell their physical bullion, which temporarily added supply to the market helps in pushing the gold price down.
Gold is one of the oldest form of investments, but so many people had no clarity on how the price of gold is set. Officially two times per day the rate of the gold is set based on the supply and demand.
People can invest gold directly through bullion markets and indirectly through certificates, shares etc,. Inclining and declining of gold prices are majorly influenced by the Real Estate market.