Why does the price of Gold Change?

Gold is not limited by keeping it as a reserve or for using it in making jewelries. The metal has always considered as a safest haven against all hedge like inflation deflation and other economic drawbacks. Apart from its investment and jewelry market, it is also used in manufacturing electronic and medical devices. It was year 2011 when in the international market the price of gold raises to its highest recorded price which was $1,420 per ounce. It’s a tedious job in finding reason behind the change in gold prices. Why does the prices of Gold change? And here are the reasons: 

• Central Bank Reserves- Central Banks keeps a reserve of paper currencies and gold in order to face the economic uncertainty. But when they try to keep more gold reserve without selling the previous one, this results in huge change. The step of diversifying with the monetary policy especially with gold accumulation, led to the rise in prices. 
• Value of US dollar- People throughout the world like to do their transaction in dollar. The price of gold is inversely related to the value of a dollar. The stronger the dollar, the lower the prices of gold and vice versa. This is the reason why people deal in gold reserves at the time of economic uncertainty because of weak dollar. 
• World Wide Jewelry and Industrial Demand- According to World Gold Council, China, India and United States are the biggest users of gold in terms of volume. A huge demand is made by these countries for jewelry making and for industries. The change of prices here comes with simple logic of demand and supply where when Demand in Gold, consumer goods increases, the prices too can increases. 
• Gold Production- China, United States, South Africa and Australia are the areas where biggest gold mines are found. But the fact is that miners have to dug deep in order to get the quality gold. This let them into hazardous situation which costs more to get less gold. Gold mines cost extra for their production which result rise in prices.