Gold is one of the most fascinating commodities in the world. The price of gold has changed drastically in decades. The cost of gold has increased over time, but how it has remained rare has kept it a valuable commodity.
Despite its volatility, the price of gold has steadily advanced in the last few years. Fluctuation in gold jewellery prices today is common and is based on numerous factors. Here, we examine the historical fluctuations in the price of gold.
How has gold’s price changed over time?
Following a bright start to the year, the price of gold followed a volatile tendency during the last couple of years.
India’s gold prices in 2022 have been erratic. The cost of gold has increased considerably since 2021 during the first six months of the year due to the war between Russia and Ukraine, inflation, and the rise in US Fed interest rates.
Gold jewellery price today has drastically increased over decades compared to a few low points in certain years.
Gold prices in India were stable for more than six years, from 2011 to 2017. The primary advantages came in 2020 and 2021 when Covid-19 struck, while some little advancement occurred afterwards.
Gold is a safe investment; therefore, traders rushed to it, driving up prices.
Due to the sharp increase in gold prices over the preceding two years, there has been a considerable decline in gold investment and demand in nations like India.
Moreover, in 2022 the prices of gold will be extremely volatile due to inflation and an increase in Fed rates.
What causes changes in gold prices?
The following factors might shed some light on why gold prices fluctuate:
- Demand and Supply: The price of gold is affected by its demand and supply. Auspicious motives are used to buy gold. People often purchase gold at weddings, festivals, or other joyous events. As a result, gold’s value will increase as demand rises.
- Geopolitical Factors: The gold’s price in India is also influenced by political and governmental issues. The price of gold can rise or fall in response to political events and significant economic changes that could influence the entire world.
- Interest Rates: There is a negative correlation between interest rates and gold prices. When interest rates fall, there is a greater demand for gold. When interest rates are decreased, there is a decrease in the demand for gold.
Data shows that gold prices have traditionally increased with a few exceptions during the past ten years. To protect themselves from economic disruptions, investors are turning to it.
When selling gold, it is crucial to consider the economy’s status. For instance, prices will rise as demand for gold surges. Therefore, it might be advisable to hold off on selling the gold jewellery until they have increased in value if one foresees tougher times.
Additionally, look for reliable and trustworthy buyers when selling gold.
Buyers like Muthoot Gold Point are reliable since they are verified, accredited, and have transparent procedures if one wants to sell gold for cash at the maximum gold rate.