Gold prices by four factors influence. They are: 1. Fear; 2. The strength of the dollar; 3. The central bank's business; 4. Jewelry demand.
The global financial crisis created a climate of fear in 2008: gold first reached $1,000 March, when the world market is collapsing. Then gold fell back. In gold prices and global economy growing problem is between correlation. In September 2009, gold again reached $1000, then the global market recovery has established. This suggests that fear is not the driving force gold.
The strength of the dollar has a strong influence for gold. As the dollar has weakened, money flows into gold, this drive the price. The dollar index figure shows from March 2009 $start steady downward. In this period from $1000 gold fell to $850. Late in the period, when the dollar falls, $850 gold from rising to $1,000 or more. The link between gold and dollar unlike many people think of that sure.
