USA HISTORY

Detailed explanation-1: -Demand and Supply: When there is a rise in demand for gold, the price increases, and vice versa. Gold is one commodity that is continuously in demand. Demand and supply play a major role in pricing of gold.

Detailed explanation-2: -With increased rates of interest, customers tend to sell gold to acquire cash and as such an increased supply of gold leads to reduced rates of the metal. Alternatively, lower interest rates translate to more cash in the hands of customers and as such greater demand of gold and thereby increased price of the metal.

Detailed explanation-3: -Supply is generally considered to slope upward: as the price rises, suppliers are willing to produce more. Demand is generally considered to slope downward: at higher prices, consumers buy less.

Detailed explanation-4: -Fears of recession and rising interest rates led to a fall in stock prices in the developed world. At the same time, the fall of cryptocurrencies prompted investors to move toward safe haven. That spurred the demand for gold.