Gold Price Fluctuation Essay

The topic is selected for the project is the Gold monetary value fluctuations and specious as a trustment. I selected this topic because of the change in the legal injury of bills and pecks interest in investing in grand as an investment. This topic is selected due to the fluctuating nature of specieen and changing trend of notes charge. Nowadays people tend to invest their money in florid so as they can increase their investment according to the price of grand at that particular period. Of whole the precious metals specie is the metal where people invest more. gold is in any case at the mercy of stocks. When equities plummet, investors are often forced to sell gold for cash. But any significant dip can trigger a wave of depraveing an investors purchase gold at discount prices resulting in a strong tug of war for prices.In this project I include the fundamental factors that contribute to golds strong price journeys like price manipulations, supply and demand, safe h aven and peer pressure buying, property debasement, central bank buying. I also include the gold fluctuations and its impact on Indian economy. The importance of the project lies in the areas much(prenominal) as gold as one of the most valuable economical indicators, golds price elasticity is negative, rising gold price, gold as a safe investment, gold price determination move by landed costs and by the rupee-dollar exchange rate, factors affecting gold price fluctuation. It also deals with the fluctuation in the gold and its relation to fossil oil markets.SCOPE OF THE STUDYThe scope of the study is about the day by day changes in the price of gold and the reasons behind the change. It focuses more on the fluctuations and the interest of investors to invest in gold even though the price is getting higher. The study also focuses more on the fluctuation in the gold and its relation to oil markets. Oil and gold are the 2 main items in the economy now that tends to increase day by day. And a study related to those subjects seems important and reliable nowadays. The investment consumption of people is changing day by day and my project deals with the peoples interest in investing in gold. And therefore the reasons for the fluctuations of gold price are necessary to be known.As we each know, of all the precious metals, gold is the most popular as an investment, investors generally buy gold as a hedge or harbor against economic, political, or social fiat currency crisis (including investment in market, declines burgeoning national debt, currency failure, inflation, war and social unrest. The gold market is subject to speculation as are other markets, especially through the use of future contracts and derivatives. The memorial of the gold standards, the role of gold reserves in central banking, golds low correlation with other commodity prices, and its pricing in relation to fiat currencies during the year 2007-2012 global financial crisis suggest that gold b ehave more like a currency than a commodity.