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There are many factors that influence the location of the gold price. Nearly 95% of total trade in gold is done by day traders on the futures market, buy the gold price to depend heavily on market sentiment and the obligation of dealers or sell. Gold is a safe heaven investment against inflation and economic uncertainty is the reason we have been facing for some time gold has been rising steadily in recent times. Gold is traded in U.S. dollars, it is also directly influenced by changes in exchange rates and a weaker U.S. dollar usually means higher prices for gold.

Supply and demand for physical gold has a great influence on the price of gold. India and China are by far the largest consumer of gold in the world, and demand for bars and gold jewelry at some point gold will be in both directions. The people of India have to accumulate a long tradition of gold jewelry as a sign of wealth and prosperity that these countries are more serious and demand for physical gold would be higher. On the other hand, gold jewelry is often reduced as a luxury product and unstable economic conditions, demand for physical gold is not in Western economies, which may affect the price of gold.

The political and economic situation in the world has an impact on gold prices. During the recent recession, when interest rates near record lows lower, the price of gold has risen steadily. The reason is simple – if the rate drops investors withdraw money from interest bearing accounts, because they depend less attractive for money and pour it into products such as gold.

Tensions in the Middle East have a direct influence on the price of gold because gold is highly influenced by other products such as oil. War in Iraq and instability in Iran play a major role in the recent surge in gold prices.

Now back to our original question – Is it time to sell gold? It’s a complicated issue, but I think the short-term outlook is much higher commodity prices, and I think we’ve reached the peak price of gold. Many financial advisers recommend at least 5% of assets in gold, I highly recommend this time to raise the gold to 15% of your portfolio and diversified investments to protect your assets. On the other hand, there are good reasons to sell gold today, especially when faced with financial difficulties, because prices have never been higher and it is useful to consider to sell gold to meet other financial obligations. If you invested in gold 5-10 years ago and made a decent profit, it may be worth it to sell in your specific situation. If you’re on the verge of losing your house while standing on gold jewelry you inherited, I encourage you to sell gold now turn.