The most important factors affecting gold prices

Mohammed Abdelkhalik
February 19, 2021

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Article education: Gold prices

Gold is one of the most popular commodities in the field of investment throughout the ages, as it maintains its value during market volatility.

This metal is characterized by a high economic value, which makes it the primary controller in the economy, as the amount of gold that the country maintains in the International Monetary Fund is what determines its monetary reserve, and the strength of its economy.

The reasons that lead to changes in the prices

One of the most important reasons affecting the metal prices is the currencies, meaning that if the value of the currency in a country declines as a result of the negative effects caused by high inflation rates, this makes investors resort to buying the precious metal as a safe investment and a way to hedge against market risks which will increase the demand for it and thus to its high prices.

The main reason for the high inflation rates is the rise in oil prices, which increases the negative pressure on governments that tolerate printing more paper currencies, forcing individuals to keep their money by placing them in assets or buying precious metals, especially gold.

Ways to invest in gold

There are many (and varied) ways through which you can learn to trade and invest in gold, including the stock exchange, funds, and futures contracts.

It’s stored in several forms, including gold bullion for investment or in the form of jewelry and crafts to keep money and invest as well.

Investing in the gold market is considered one of the best safe ways to earn profits in times of turmoil and market fluctuations, in addition to the annual return that it achieves, and it is likely to reach 20% as prices are constantly increasing, which guarantees real profit opportunities unlike other investments.



Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.