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10 Reasons Why Gold Prices Will Rise In The Future

10 Reasons Why Gold Prices Will Rise In The Future

June 22, 2021 16:16

Gold as standard value for currency

Gold has its own value all over. Gold being the standard value for currency all over the world is experiencing rise in price over time and that has got various reasons for happening. Surely, that has some impact on the investors who look it as a preferred asset. Due to it's prominent role in both consumer world and investment, it is one of the most widely discussed metal as it impacts the value of currencies in the world. If we see foreign exchange markets, gold has got a major role there impacting the figures every time the value of gold changes. As a matter of fact, gold actually can be used to analyse the health of local and international markets and economies.

Price rise of gold and US dollar implications to gold price

Value and price of gold and value of world's dominant reserve currency i.e. US dollar has a strange relationship. This makes US dollar a currency used majorly for international trade exchange. Gold prices and value of dollar are actually inversely related. This is because everytime dollar falls, demand of gold and other commodities increases and the price of gold increases and vice versa. So, this gives us an inverse relationship of gold price and the value of US dollar. This makes gold price inversely dependent on dollar rates. This complicated relationship of gold and US dollar makes it imperative to study and analyse everything in detail to understand various scenarios on how the market could behave in various cases of rising and falling US dollar value, which can be done through Ticker tape displays. But there are several other factors that are and might influence the price of gold and with how things are moving, price is obviously expected to rise over next few years.

Reasons behind Gold price rise

We have gold breaching the highest ever price margin and now globally also with some recent developments, price is expected to rise.

Gold price has been soaring and coming down in terms of sterling. With British pound and sterling at all time low, it meant higher price of gold in terms of pound. With the Brexit on the cards, which means financial uncertainty in the market will rise, the gold price is expected to rise strongly. Another reason of rise in price of gold is its demand among institutional investors. Over the years demand among institutional investors for gold has risen. This is also one of the reasons for gold price rise with increase in demand.

World Gold Council bringing in the thought of pensions funds being able to buy gold, has also added to the reasons why gold price could rise. This was not how it happened traditionally. Moreover, Brexit has opened financial uncertainty in the market and to hedge currency risk, central banks of all the countries need to diversify reserves which gives possibility of central banks buying more gold. As the gold prices are rising, gold mining companies are also on a high which means they will be well positioned to be out debt very soon and start making money. This will result them to not be in a hurry to sell gold immediately. In some countries like India, festive seasons result in rise in price of gold with increasing demand. So, there are numerous reasons to price rise of gold. But to be diligent and know the market, it is important to have all the financial market details and figures on the single screen. That's where Stock Ticker led screens come into picture. Led Ticker displays give all the data without any loss of information.

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