Are you interested in trading or investing in gold, but you’re not sure about the future price of gold or what influences it? Gold and precious metal commodities are all subject to complicated market forces that influence the price. There is no guarantee that the price of gold will rise or decline according to experts’ predictions, although as seen over the long term, gold is remarkably good at maintaining its value, and it has seen several meteoric rises, such as the super cycle that began in 2008.
There are a lot factors that affect the price of gold, some that you will probably be familiar with, and others that might surprise. Political uncertainty is always a driving factor in the price of gold, not so much because of fears about an economic collapse, but because political events like Brexit or international tensions tend to negatively impact the stock market, and investors use gold to mitigate stock market losses. U.S. inflation also tends to drive investors toward gold bullion, and with inflation on the rise, many market watchers predict good times for gold.