gold price fluctuation

Gold Price Fluctuations

What is Gold?• Gold is a chemical element with symbol Au and atomic 

number 79. • In its purest form, it is a bright, slightly reddish yellow, 

dense, soft, malleable and ductile metal. • It is one of the least reactive chemical elements, and is solid 

under standard conditions. • It occurs often in free elemental (native) form, as nuggets or 

grains, in rocks, in veins and in alluvial deposits.•  It occurs in a solid solution series with the native 

element silver (as electrum) and also naturally alloyed with copper and palladium. 

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Introduction

• Precious & finite natural commodity

• 60% Jewellery

• India & China at the forefront of consumption

• World Gold Council's GDT

• Toppers: South Africa, United States, Australia &

Indonesia.

Types of Gold

• Yellow Gold• Green Gold• Purple Gold• Black Gold• White Gold• Rose Gold

On Basis of Colour

Types of Gold

On Basis of Karats• 9 Karat• 10 Karat• 12 Karat• 14 Karat• 22 Karat• 24 Karat

Gold Price Trend

Gold Price Trend (Last 5 Yrs.)

Gold Price Trend in India (Last 5 Yrs.)

Gold Price Trend in India (Last 10 Yrs.)

Factors Affecting Gold Prices

Global CrisisWorld events often have an impact on the price of gold because gold is viewed as a source of safety amid economic or geopolitical tumult.

InflationCurrency values fluctuate, but gold values, in terms of what an ounce

of gold can buy, might stay more stable in the long term..

Interest RatesCurrent gold prices often reflect increases and declines in interest

rates. Low interest rates equate with greater attraction to gold.

Factors Affecting Gold Prices

Value in US DollarThe price of gold and the strength of the dollar have a pretty clear

inverse relationship.

Central Bank InstabilityBank failures and irregular economic policies make buying gold seem like a safe haven investment. People flock to gold when the current

paper money system experiences uncertainty

Only about 2,500 metric tons of gold get produced each year, compared to an estimated 165,000 metric tons in the entire world’s

gold supply.

Gold Production

Factors Affecting Gold Prices

Government ReservesCentral banks, hold both gold and paper currency in reserve. When these central banks start to buy gold in greater quantities than they sell, it drives gold prices up. This is because the supply of currency

increases and available gold becomes more scarce.

Quantitative EasingQuantitative easing, or QE, refers to a central bank strategy of buying securities in order to increase the money supply. When overdone, this tactic this can trigger inflation, another signal of a rising price of gold.

Factors Affecting Gold Prices

Jewellery & IndustriesOver half of gold demand is from jewelry, and China, India, and the

United States are three countries with the biggest demands. In some parts of India, gold is still regarded as a type of currency, a display of

wealth, an important gift, and a hedge against bad times.

Supply v/s DemandArcheologists claim that people have been mining and coveting gold

for at least 5,000 years, and this precious metal is likely to remain precious even if the price fluctuates often. Gold is a finite resource and

when global economic conditions make gold more attractive, gold demand increases, making the price of gold rise.

Impact of Gold on India

IMPACT OF GOLD ON INDIAN FINANCIAL SYSTEM

Reverse Demand and Supply Mechanism

An Unproductive Investment

Deprives Financial Market off Funds

Widens Current Account Deficit

Uses of Gold

Jewellery

Financial Goals

Electronics

Awards & Status Symbol

Aerospace Sector

Medical Sector

Uses of Gold

Gold Import Trend in India

Gold Import Trend in India ( Last 5 Yrs.)

Expected Price Situation (2016)

March April May June July August September October November December2016

21000

22000

23000

24000

25000

26000

27000

Average

Price

Expected Price Situation (2017)

January February March April May June July August September October November December2017

20000

20500

21000

21500

22000

22500

23000

23500

24000

Average

Price

“Be innovative and stop the run for easy

money”

Conclusion

Thank You

Prepared by:-Rishabh Hurkat