The prices of gold are rising very high which is giving different impact on the buyers. This will stay at the same place for some time.

Federal Reserve and Gold Prices

The actions of Federal Reserve is considered t be the most important catalyst. The printing of money, to get bonds, or implement quantitative easing was based on the commitment from Chairmen Ben Bernanke who continued this. This all give the same result in the same consequences.

This produces in the degrading of the US dollar which continues to produce an invalid debt level.

In the future, if these quantitative easing were stopped, so from the actions the fall out of the Federal Reserve will remain with us for much time which can last for years or more.

This is considered to be the most important factor which helps to know about the ongoing rise in the prices of gold.

Interest charge

The most important factor is supposed to be the low rate interest climate which benefits from the prices of
gold.

Ben Bernanke said that it won’t go much high till the economy is weak. This is also told by the action of Federal Reserve. The main problem still is that to the contrary to some reports, this economy is considered to be a disaster still and there is no other way Bernanke will increase the rates of interest any time he thinks.

It will help the gold to be protected as far as it is concerned. And in this way it can be somehow helpful for people.

Economic flaw

Ever since, we had the worst economy with the tech bubble burst, and there are no recovery found till then.

This is all done in the response of the high rate of the federal debt to the unsustainable levels, but it is of no use also. More people or you can say students enter in to the markets, but still there are no jobs available for them and the economy is still is disaster.

Banks aren't lending also, which is in fact what the problem is at the back. The basis they aren't lending is since of the risk they be familiar with is there, and the reason many businesses aren't even attempting to get loans is there are a small number of increase opportunities that would give cause for the debt load.

In America, this is considered to be the fact which leads the growth of economy.

For the support puzzle of gold, this is another way.

US dollar Collapse

Many people around are losing their power to purchase, this we have discussed earlier as well. And in history this has never been recorded when it comes about that it is dropping so easily today.

The US dollar will be at low rate if the sovereign debt crisis comes down more easily to the pressure on the euro.

But it is also noticed that there is nothing available that will change the rise or decline of the rates of the dollar, this is because there is no will or the political will which will help to take such important steps.

This is very important news for the people who invest on gold. As they think this is the most lawful form of currency. Some people also identify it as gold bugs.

This is because of the truthiness of the degrading of the greenback.

Sovereign Debt Crisis

In Europe, it was supposed that gold was protected by the sovereign debt crisis and it is not good that the US dollar and gold abandon gone up at the same time. When we talk about gold, it goes very high and as the depth of crisis which is understood.

Socialism

It has been noticed that when it comes down, the prices of gold are interlinked to the fall of socialism, which is invalid and made a culture of entitlement over the world.

Over the whole universe, this will happen many times till the fall of socialism is agreed upon.

Rise

To protect against increase in the prices is considered to be the last point in which the gold and other commodities are the ways in which we can place the money. This have little effect on different investment vehicles.