Election night approaches in the United States. Gold has received attention as a refuge ( although the price came off today ( along with other safe haven assets. So what are the key price drivers for this precious metal?

1 US currency – historically an inverse relationship (priced in USD)

2 US inflation rates and money supply – positively correlated (inflation hedge)

3 Risk, politics and monetary system – positively correlated (safe haven status)

4 Demand – c. 70% for jewelry, this is seasonal

5 Supply – from mines (c. 60%) and sales of existing gold (Central banks, c. 25%)

6 Other commodities, global growth – indicative of increased demand

Real interest rates – inverse relationship (non-interest bearing asset)

Sources and additional links for reference:

Six major fundamental factors

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