The first people to melt gold were the ancient Egyptians in circa 3,600 BC. Gold jewelry came about a thousand years later after goldsmiths of ancient Mesopotamia created a headdress for a burial. The headdress was made from carnelian beads and gold pendants shaped like leaves. Some major worldwide gold mining participants include Australia, China, Peru, The Russian Federation, South Africa, and the U.S. The world’s production of gold affects the price of gold, a great example of supply and demand.
Apparently, we as a people have been tantalized over the precious metal for some time. We desire it, but the gold value constantly changes. One minute an ounce of gold is worth $2120.58, then drops a hundred dollars or more.
Well, the price of gold has bounced back up after its 10-month low.
Back in February, gold capped at $1,165.80 per troy ounce according to Comex, the primary market for trading precious metal incorporated with the New York Mercantile Exchange. Gold dropped to $1,152.50 per troy ounce, the lowest it’s been since the beginning of February.
As the dollar loses value, it becomes cheaper for countries overseas to receive, making gold easier to obtain as well. The Dollar Index for the Wall Street Journal had dropped 0.6% at 91.30.
The Federal Reserve rapidly increasing interest rates bears down on the future price of gold. However, gold doesn’t have interest rates, making it hard to compete when prices go up.
Hopefully, in 2017 the price for precious metals will continue to rise, although we expect that the dollar will yield a stronger amount.
In January, Platinum peaked at $933.70. In March, silver’s price also shot up 1.3% to $17.87 a troy ounce, and Palladium dropped %1 to $727.55 a troy ounce.
The amount of gold in the central banks’ reserve, the demand for gold, the value of the U.S. dollar, and the desire to use gold as a barrier against inflation all help to drive the price of gold.