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- Gold prices can be affected by the basic theory of supply and demand12. During times of economic uncertainty, more people begin investing in gold because of its enduring value1. Global gold demand increased 18% in 2022 to 4,741 tons, according to the World Gold Council2. Jewelry is the single largest global driver of physical gold demand2. Central banks around the world also buy and hold gold to diversify their reserves2.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.
As such, gold prices can be affected by the basic theory of supply and demand. This means that as demand for consumer goods (like jewelry and electronics increases), the cost of gold can rise. During times of economic uncertainty, as seen during times of economic recession, more people begin investing in gold because of its enduring value.
www.investopedia.com/financial-edge/0311/what-d…Gold prices are also driven by basic supply-and-demand dynamics—and there is plenty of demand for gold. Global gold demand increased 18% in 2022 to 4,741 tons, according to the World Gold Council. Jewelry is the single largest global driver of physical gold demand. Central banks around the world also buy and hold gold to diversify their reserves.
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