economy : Why-is-the-gold-price-going-down-in-November-2014 -2
Answer by Jai Parimi:
Caution: I am no expert. This is no advice. 😛
1. Strong US Dollar:
- Raise of dollar made the precious metal less attractive to foreign buyers which reduced the demand.
2. Reduced Inflation rate:
- Gold is often bought as a hedge against inflation during the times of crisis. But Japan and Europe are currently fighting the threat of deflation.
3. Increased Interest rates:
- News that US is contemplating to increase the interest rates is doing rounds. Increased Interest rates means Increased money in FD's which means reduced money to buy gold or reduced demand for gold.
4. Market Sentiment:
- When gold had a positive sentiment, it boosted it's price. With negative sentiment for gold, It has to fall.
Thanks for the A2A. Few experts are predicting gold price to reach below $1000 level. So, better wait before you buy in the short term. 🙂