The Season changes On Gold Price


As well in the wet season and dry season, the ups and downs of gold prices should be predictable because the price of gold is a mirror for the price of primary commodities for human needs. When commodity much in demand (high demand) for example in the winter in the northern hemisphere (in the winter people need more food, clothing and energy) – the price of gold will likely rise, see the statistics on my previous article "Gold Buying Season … ". Season low gold price should also have started going on since four months ago because of the northern hemisphere – which is generally more affluent population – winter had ended in March.

What actually happens quickly in recent years – which is not (yet) occurred during the previous decades?. To change the rainy season, let the experts who explain meteorology and geophysics.

For the high and low gold prices which seem to no longer follow the season, economists and market players have their own theories. Among the many theories, here's my red yarn as it is summarized below:

  1. The days the economy is stable and relatively non-volatile as the world experienced in the past few decades – people comfortable to put his money in a fiat currency and play them in a variety of profitable business. Gold only be purchased in sufficient amount for asset diversification, fixings etc.
  2. When the great world economic turmoil as happened in the past two years, there is a new type of gold demand is suddenly increased the demand for safe haven – a place assets in a safe harbor.
  3. When the need for safe haven gold is dominant in the market, the price of gold becomes very easy to fluctuate. It's easy on the mounting issues, thus affecting the price of gold is no longer a fundamental factor – but more on the instantaneous perception of market participants.

Because of these underlying factors will continue to happen or even in the severity (level of influence) that is stronger and more frequent frequency, then the gold price will continue to fluctuate in the short run great. But the direction of long-term (more than a year) seems obvious keatasnya encouragement.

See the movement last year on the chart above for example. In December 2009 then, the world gold price could rise to U.S. $ 1.226 / Oz but also had dropped to U.S. $ 1.083 / Oz or could fall within the range of 12% in the month. But overall if we pull last year's time – world gold prices rose approximately 30% of that of the price range of U.S. $ 920/Oz early July 2009 to a figure of U.S. $ 1.205 / Oz today.

For this month and next month, I was hoping there is still the gold price low season – even though only two months – six months instead of like in the past. Exactly how, no one can know for sure – just based on price movements over the past year – the lowest amount of future possibilities not to touch the green line on the graph above.

Other articles you need to read;


Leave a Reply