How Gold Prices chart is driven in Loans ? and how Attorney to invest in gold as Lawyer without Credit

What Really Drives Gold Prices Gold occupies a special place among precious metals. For much of recorded history it has played an important role as money or, more recently, as a relative standard for other currencies. In the latter part of the 19th century, many European countries as well as the United States instituted gold standards, pegging their currency to a fixed amount of the precious yellow metal. This system remained more or less in place until after World War II, when the Bretton Woods system pegged the US dollar to a fixed exchange rate of US$35 per troy ounce. In 1971, the U.S. suspended the convertibility of dollars to gold, transitioning to the system of fiat currency still in place presently. Today, there are no remaining currencies pegged to gold (the Swiss Franc was the last currency to drop the gold peg, in 2000), but its legacy as a store of value still greatly influences the way it is used today. Unlike many other precious metals, gold’s usage is dominated by investing applications: 40% of the new gold produced every year is used in investments, 50% is used in jewelry, and 10% finds its way into industrial applications (Source: Metals Focus, as of 12/31/15). All of this is to say that, from an investing standpoint, gold does not behave very much like other metals. It is not very responsive to changes in supply or demand. Rather, gold’s price movements are largely attributable to a number of global economic forces or “price drivers.” The purpose of this article is to explore which ones and why, in order from most to least impactful. This article will also examine Negative Interest Rate Policy (NIRP), and take a cursory look at where gold might be headed for the remainder of 2016. Introduction
Exhibit 1: Gold and the trade weighted dollar tend to exhibit an inverse relationship
2011 2012 2013 2014 2015 2016
Source: Bloomberg, ETF Securities. Data as of June 3, 2016. Chart from 12/31/2010 – 06/3/2016.
Gold, US$/oz (lhs) US Trade Weighted Dollar (rhs)

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