Currencies Gold

Currencies Gold and other commodities such as silver and oil are always fluctuating. The most influential factor for gold price fluctuations is currencies. Other factors include forward hedging by gold mining companies to protect their gold sales, and massive buying and selling by institutions. Gold is not just a commodity, it is also currency. As Gold does not get used up like silver or agricultural commodities all the gold ever produced in the world is still here. It may have moved around or is stored in vaults. Gold is used to store wealth and it is a replacement for money when the confidence in a currency wavers. When the US dollar declines the Gold price rises. Today many people prefer to hold gold instead of currencies - which have been fluctuating wildly due initially to the GFC and now because of the Euro-debt crisis and the unsettled Middle East.