Sign in

Gold and Silver Prices: Influencing Factors

Shridhar G Vatharkar
Gold and Silver Prices: Influencing Factors

You must be aware that the currency rates of various countries were linked to the price of gold in the previous centuries. Therefore, gold had a primary role to play in the international monetary system. 

As the floating system of currency exchange rates began in 1973, the role of gold has diminished. However, gold has been a safe haven for investors globally. They prefer investing in gold during inflation and economic instability. 

The Fixing

Let us try to reveal how the gold and silver prices are determined. Gold and silver prices fluctuate frequently. Would you like to know about the authority to set the gold and silver prices? 

The London Bullion Market Association (LBMA) fixes the prices of gold, silver and other precious metals twice a day, through an electronic auction. 

The Gold Fix and the prices of Silver, Platinum, Podium, and Iridium set by this authority is considered as a global benchmark for precious metal contracts and trades. 

Other Factors Determining the Gold and Silver Prices

Along with the ‘Fix,’ you need to understand the economic and other technical factors that drive the ups and downs of the gold and silver prices. Here are the significant aspects that keep the gold and silver spot prices volatile:

  • Prices of gold and silver depend upon prices of other commodities like crude oil. 
  • As the central banks intervene to control exchange rates, there may be fluctuation in gold prices if they buy or sell gold.
  • Changes in economic policies and interest rates influence the gold-silver prices.
  • It is normally observed that if other emerging markets grow faster than the US, there will be changes in the gold and silver prices.
  • Gold is mainly used for investing and jewelry. However, silver has many industrial uses. So, the global demand and supply scenario influences the gold and silver prices. 

To learn more about the fixing, spot prices, source of gold and silver prices, and reliable market data provider for CFDs, I recommend you read the latest article about gold and silver price determining factors

Understand the driving forces behind fluctuating gold and silver prices, and rely on the most trusted market data vendor for a safe trading journey through informed trading decisions. 

Shridhar G Vatharkar
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more