What determines gold price?

@magic9 (981)
China
December 17, 2009 9:41am CST
Does anyone knows what affects gold price? or is there anyone who is majoring in economics? I am watching gold price, have no clue how to invest in gold market and make profits from it. but it's intersting to watch its changes in different moment in each day.
3 responses
@kail2001 (250)
• India
17 Dec 09
Hi magic...Gold is a commodity and bought and sold on the exchange by people like you and me. It is people like you and I that determine the price of gold by either purchasing or selling gold on the open market. Supply and demand play a major part of what the current price is along with global economic events such as war, communism, and even holiday events that require jewelry that need to be made from gold...
@magic9 (981)
• China
18 Dec 09
yeah, shopping season will raise the gold price. thanks. I need to study it more because I want to invest in it.
@kaylachan (4778)
• Daytona Beach, Florida
17 Dec 09
Gold price is often determined by qulity of the gold and what value byers and sellers will spend on it. That can be said for just about any product really. Good quility trumps everything else. If it doesn't look good it won't sell. It has to be stable and not look half-assed or anything of that nature as well. So if it seems like c r a p it probably is.
@tdemex (3547)
• United States
17 Dec 09
Demand!