Why gold prices move: five forces explained in plain words

1. A weaker rupee raises the local price of gold.
2. Higher interest rates make gold less attractive.
3. Weddings and festivals lift demand.
4. Central banks buy gold as a reserve.
5. In a crisis, investors seek safety in gold.

No single force explains the price. Watch two or three together.

Over the last decade, a 10 percent fall in the rupee has meant, on average, a 6 to 8 percent rise in the local gold price, as the metal is priced in dollars.

Jewellers also watch the festival calendar. Demand peaks before Dhanteras and in the wedding season from November to February.

This is a demo story: every name, place, organisation and figure in it is fictional.