What determines the price of gold?

What factors determine the price of gold. Will gold every go higher or will it start to sink? Thanks in advance for all those who answer with serious replies.

Public Comments

1. the market
2. how pure it is and the demand for gold
3. in a market economy the people in a traditional economy your ancestors in a communist economy the government
4. Supply and demand. How much gold is on the market vs how much gold people are buying.
5. What people are willing to pay for it. It's pretty crazy high now, so I don't think it would be a good time to invest. In fact, I think the more you hear commercials and people saying what a good time it is to buy gold, the more you know it's NOT a good time to buy.
6. Way too many factors to list...heres a pretty good article on gold prices... http://www.gold-eagle.com/editorials_99/madhok101999.html
7. when the buying power of the dollar goes down with respect to other currenceys. like the euro the value of gold goes up. the dollar in this country is worth one dollar.. but lets compart it to japinese yen... when i was there in the sixtys.. i got 365 yen for one dollar... now one dollor gets less than 100 yen. or in the dominican republic.. 33to 35 peso for one dollar.. now this has fallen to 29 . the lower the dollar falls on trade witth other dollars gold value increases.. ok gilermo.
8. The market determines the price of gold, just like it determines the price of a stock. When you have a buyer and seller and they both agree on a price then that is the price it is traded at.
9. Gold is a commodity and bought and sold on the exchange by people like you and me. It is people like you and I that determine the price of gold by either purchasing or selling gold on the open market. Supply and demand play a major part of what the current price is along with global economic events such as war, communism, and even holiday events that require jewelry that need to be made from gold.
10. the economy.