[Pswann1017]

What makes gold's price go up or down? Are there any early signs to watch?

[Paradoxdruid]

The price of gold is generally determined by demand, not supply since supply is relatively constant but demand is not. Demand for gold is driven by fear, greed and uncertainty. When there is a lack of fear, greed and uncertainty, the price of gold falls. Perhaps it is not correct to say a lack of greed. There is always greed. It is just that greed can change its focus. When the price of gold increases greed tends to focus on gold.

The price is also affected by interest rates. When interest rates are low, as they have been for the past 5 years, money tends to come out of savings and go into alternative investments such as gold. When interest rates are high, it becomes more attractive to save money.

Now with the U S waging war and the price of oil heading north, and U S jobs being shipped to China and India, there is a lot of fear and uncertainty out there. Then as the price of gold rises, it tickles the old greed bone, which adds to demand. The fact that interest rates are now rising is a mitigating circumstance.

[D.J Cat]

The price of gold along with other things such as stocks and silver have fluctuating prices due to supply and demand, but because of inflation you will find that over the long term all of these things will go up

[EmmyC]

It is seen as a "secure investment" in times of great economic uncertainty. It's a tangible asset as opposed to stocks, bonds, etc. So when the world economy seems to be unstable, demand for gold goes up. And vice versa.

[regenaf]

I think as there is some shortage of food we have to buy at much price same applies here.