10 Factors Driving Current Market Price of Gold

Market Price of Gold1. The State of Economy

The market price of gold has risen incredibly in the last few years, mainly because of poor economy state. When the economy is doing well, precious metals prices are in the low. Oppositely, in poor economies prices for precious metals quickly go up.

2. Solid History

Gold bullion, whether it is ingots, bars or coins, has been used for thousands of years. This investment option has a very solid history behind it. And if you know who controls gold bullion market prices your investment in gold market will be a good one.

3. Low Interest Rates

One of the driving factors with the gold spot market price is the low interest rates, both in the US and globally.

4. Rising Unemployment

Unemployment rates can have an impact on your gold bullion investment. This factor will also help drive precious metal prices up, because of the uncertainty that high unemployment rates can cause.

5. High US Deficit

Another factor that affects the market price of gold is the United States federal deficit. A high deficit causes investors to turn to alternative investments such as precious metals as a great hedge they provide against economic uncertainty.

6. Amount of Foreign Debt

Foreign debt amounts and numbers will affect all precious metal prices. This includes virtually all other precious metals.

7. Global Economy

Not only domestic economy drives prices for gold, global economy is also a determining factor for that.The market price of gold is a great addition to your investment portfolio providing investment insurance, but when the global economy is weak the demand for precious metals will increase, and so will prices.

8. Considered As Safe Investment by many consumers

Both gold and silver bullion coins are considered a very safe investment, causing a high demand. This demand also triggers prices to rise.

9. Weak Currencies

Many currencies around the world have been weakened. This has increased the market price of gold per ounce, because many investors are now choosing yellow metal over foreign money markets and investments.

10. Excellent Liquidity

One reason gold has such a high price is because it is very liquid, making an excellent investment. Even the scrap gold value has reached amazing heights where pricing is concerned.