Over recent years, the price of gold has experienced an unprecedented surge. This raises one basic question – why has the price of gold risen so sharply? The simplest answer lies within the fundamental economic laws of supply and demand. There has been a consistent increase in demand for gold, contributing to its rising price.
One possible explanation is the heightened geopolitical tension in the past few years which made investors turn to gold as a safe haven asset. In addition to that, falling interest rates across the globe have made gold, a non-interest bearing asset, appear more attractive.
Moreover, the ongoing global coronavirus health crisis has also played a crucial role in augmenting the gold prices, as investors are wary about the economic repercussions. The depreciating value of currencies, especially the US dollar, has also proven to contribute to the rise in gold prices.
In conclusion, a multitude of interconnected factors, ranging from global economic scenarios to basic supply-demand principles, have led to the price of gold soaring to new heights. Read More
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