Project 1- ex 2, gold price - The price of Gold. (Chapter...

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The price of Gold. (Chapter 18, Web Based Question 1, page 358): The price of gold today, yesterday, and throughout the year. Explain supply and demand of gold. In international market, Gold is currently trading at 1146.40 per ounce. On Friday 20 th. November, 2009 New York market was closed at $1150.90 per ounce. Surprisingly, the gold price of 20 th November, 2008 was $738 and of 20 th. November was 1150.90, and these prices also are the lowest and highest price respectively during the 12 month period. The price of gold is fixed twice a day by representatives from bullion-trading firms. These prices are used worldwide as a reference. In addition, intra-day spot price ranges from low to high to low to high swings derived from multiple gold-trading markets around the world as they open and close throughout the day. The gold price is driven by supply and demand similarly to prices of others commodities and investments. However, the price of gold is not likewise to other prices of commodities in fluctuating affected by hoarding and dishoarding of gold because almost all the gold mined and produced is stills existing in market and hoarded by consumers, central banks, government agencies, IMF and others organizations. The supply of gold is inelastic, gold producers are not relatively sensitive to the price
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Project 1- ex 2, gold price - The price of Gold. (Chapter...

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