Gold has been traded since it was first discovered because of its alluring luster. Nowadays it fulfils other important functions. It is used for electronic parts due to its high conductivity and great resistance to corrosion which ensures the flow of data from one electronic component to another is transferred quickly and accurately.
In the medical industry gold is applied for treating various ailments, such certain types of cancer and rheumatoid arthritis. Dentists used it because it is easy to mould.
In the world of finance, gold is considered a safe haven assets and it attracts investors in times of crises and political instability.
How Prices are Affected
One of the factors that affect the price of gold is the value of the United States dollar. In most cases, when the dollar rises, the price of gold goes down and vice versa.
Other factors include global demand and worldwide production level. The biggest producers of gold are the United States, China, South Africa, Russia, Peru and Australia.