The lack of supply and increased demand
Whenever a shortage in supply has increased the price, the principle of trade is known, and therefore, we find that the lack of production in the gold and oil of the most important factors leading to an increase in their prices, the lack of production has come for many reasons, as a stopover for producing countries to increase production launch of gold or oil.
Low interest rates
Note here that the relationship is an inverse relationship, the more interest rates rose dropped the price of gold, and vice versa, as interest rates fell increased gold prices, and this is due to the fact that individuals resort to keep more money when interest it be high in order to benefit from higher interest rates, but when low interest rates will go individuals reversed a tendency to invest in gold for fear of exposure to lower their money continuously.
We have observed during the recent financial crisis that interest rates have tended towards decline significantly during the current financial crisis, has amounted to almost zero in some countries, so it was not surprising that gold prices tend to rise that we have seen during this period. And it is expected that the reversal in gold prices with the world out of recession happen and interest rates begin to rise.
The political twists and bad conditions
Previously we mentioned that high oil prices would increase the price of gold also, due to the fact that the fluctuations and political changes play an important role in the rise in oil prices due to supply shortages and weak productive capacity during the crisis, this in turn will lead to higher gold prices accordingly. Perhaps the most striking example of this is what happened to the prices at the US invasion of Iraq.
