The Main Factors Influencing the Policy of Pricing for Gold in the Conditions of Financial Globalization of the World Markets

• Main Authors: Miroshnychenko Tetiana M., Pysarevskyi Mykola I., Frunt Ielyzaveta B.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2019-04-01
• Series: Bìznes Inform
• Subjects: precious metals market; international financial organizations; gold market; investors; central banks; world market conditions; financial globalization; gold and currency reserves
• Online Access: http://www.business-inform.net/export_pdf/business-inform-2019-4_0-pages-21_27.pdf

The publication is aimed at analyzing the gold market, defining the main factors that influence the pricing for gold, analyzing the world demand for gold. It is indicated that gold reflects the monetary and financial positions of the country and is one of the key indicators of its competitiveness; it is emphasized that the world gold market plays a special role in international finance; it is estimated how the world countries apply a variety of policies to form their gold reserves. The world gold market is analyzed for the time period of the last 10 years, identifying that the demand and supply of the yellow metal are constantly changing both structurally and functionally. Demand depends on the level of industrial development, the need for replenishment of gold and currency reserves of the State, speculative tendencies and generally tends to steady growth. The article covers the issues related to the world economic crisis, which started in 2008 and caused changes in all spheres of life: social, economic, political; which influenced development of the financial sector and the dynamics of both the world and national currencies, provoking instability both world-wide and in the scale of individual countries. In the crisis moments, gold is always an object of increased interest, being a risk-free and protected asset that has high liquidity. The conclusions can be drawn as follows: gold, in comparison with paper assets, remains a popular investment instrument and retains its significance for the States; the factors influencing the formation of gold prices are multifaceted and cover all aspects of the production, sale and consumption of gold. Currently the pricing for gold is being formed under the influence of political and financial factors.