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Gold Price Moments

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The gold price moments Introduction: Currently we are living in 21st century. Since the human are starting life need to fulfill basic human needs. Humans are going to fulfill their basic needs and wants by goods and services. At the present in the commercial word have more options for fulfilling the human needs. When there are selecting options for achieve then needs starting the demand for goods and services. Based on that world suppliers supply their general goods and services. In this assignment, I will be looking at the concepts of demand and supply and how this can explain the movement of the price of gold for the past 15 years Demand can be defined, consumer desire, willingness and ability to pay for a particular goods or services. Quantity …show more content…

The following diagram shows a situation where a determinant or a group of determinants caused an increase in the demand. A shift in the rightwards or upwards of the demand curve is known as an increase in the demand. In Diagram 003, the new demand curve D1 is the result of an increase in demand cause by a determinant of demand such as an increase in income and the increase in the price of an alternative good. The new equilibrium formed at the point where D1 meets the Supply curve results in the increased price of P1 and the increased quantity demanded and supplied of Q1 Similarly the supply curve also can move either left or right depending on the effect of determinants of the supply. The following diagram shows a decrease in the supply. As shown in the Diagram 004, the supply curve shifts to the left from S to S1, which could be the result of a negative effect on a determinant of supply such as increase in the cost of …show more content…

We can understand this if we first look at the uses of gold. For the most part it is used as a way of investment, as it is considered as one commodity which has a very stable value over the long-run. Secondly, it is used as a reserve by countries. At the same time, United States Dollar is also used as a reserve as an alternative to keeping gold. During the recession, the US Dollar lost much of its stability, which in turn made the investors look for gold as the safer option to invest. We can see that the value of dollar plays a major role in the price of

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