The gold price today have been on a steady incline over the past few years. In fact, the price of gold has more than doubled since 2009! So, what’s driving this increase in demand? Let’s take a look at some of the reasons behind gold’s popularity.
Gold Price Today and Why the Price of Gold Fluctuates
The first reason has to do with economics. When there is uncertainty in the stock market or global economy, investors tend to flock to gold as a safe haven for their money. This is because, historically, the price of gold has been relatively stable even during times of economic turmoil.
The second reason has to do with jewelry demand. According to the World Gold Council, roughly 50% of gold demand comes from the jewelry industry. And, as economies around the world continue to grow, so does the demand for gold jewelry. In fact, countries like China and India are now some of the largest markets for gold jewelry!
Lastly, central banks are also buying up large quantities of gold. This is because central banks see gold as a way to diversify their reserves and protect themselves from economic uncertainty. In 2018 alone, central banks purchased approximately 651 tonnes of gold!
All things considered, it’s no wonder that the Gold Price Today is on the rise. And, although there may be some short-term fluctuations, experts believe that the long-term trend is still very much intact. So, if you’re thinking about investing in gold, now might be a good time to do so!