Factors that influence the price of gold are inflation, supply and demand, global crisis, interest rates, and the value of the American dollar. The jewelry industry also plays a major role in influencing the price of gold around the globe, explains Scottsdale Bullion and Coin.
Investing in gold can be a safe way of preserving wealth amidst turmoil, according to Scottsdale Bullion and Coin. As financial instability increases, the price of gold rises. Increased inflation may lead to the prices of gold increasing as investors lose faith in paper currencies. Moreover, as interest rates increase, gold prices increase. However, an increase in the value of the dollar leads to a decrease in the price of gold.