Y does gold rate shoot up in sep-oct??worldwide??

Question

Y does gold rate shoot up in sep-oct??worldwide??

Answer 1

You should know about two things which controls the Gold prices World over.

1. Exchange rate of US Dollars against other Foreign Currencies. Normally people, including the Financial Institutions prefers to save in USD as it is considered as a World Currency and easy liquidation. But if the USD falls against their Currency ( as it is happening against INR ), the investor prefers to opt for Gold as their choice of safe investment. Hence the demand for Gold goes up and also the price.

2. India being the biggest buyer of Gold in the World ( about 800 ton per year ) controls the World Gold price. The Months of September - October, being the post harvest season, coupled with festival and Marriage season in India, the demand for gold goes up. India being fully dependent on Imports for all its Gold requirement, naturally the Gold prices will shoot up in International Gold Exchanges i.e., New York & London.

Hope your question is satisfactorily answered. Go and buy now, the Gold prices are already picking up in the market.,

Happy shopping.