Gold is the most valuable safe haven asset in the world.It is mostly consumed in manufacturing ,jewelry ,medicine and electronics. China and India are the largest gold consuming countries in the world.China is the largest gold consumer followed by the India.They both account for 45 % worldwide gold demand .after the great recession 2008,countries started building their gold reserves. This practice played an important role in escalating the gold prices in last few years.Currently United states of America has the largest gold reserves in the world.It has 8133.5 tonnes of gold reserves.This article will provide important information about the role of countries in controlling the gold prices in USA.Following is the list of countries influencing the worldwide gold prices.
China has the second largest economy in the world. It is the largest producer and consumer of the gold.It plays an important role in influencing the gold prices in USA and all over the world.Chinese people mostly use jewelry and other miscellaneous industries.The demand for gold in China has fallen by 14 % but still China and India account for 45 % worldwide gold demand.The Chinese government’s practice to increase its gold reserves also played an important role in the increase of the gold prices in last few years.China has fifth largest gold reserves in the world.Currently,it has 1797.5 tonnes of gold reserves.The slowdown in the Chinese economic slowdown also played an important role in increasing gold demand last year.
India is the fifth largest economy in the world.It is the second largest consumer of the gold.Indian women are known for their enormous love of gold.They take it as a symbol of status and wealth. According to the statistics,India consumes more than 900 tonnes of gold annually.Indian women mostly use gold in jewelry for their weddings.According to a survey conducted by world gold council,about 64 % of Indian consumers intent to buy gold jewelry in their lives. Indian government is building up its gold reserves at a fast pace.Currently it has tenth largest gold reserves in the world.It has 667.7 tonnes of gold reserves. The rising love of Indian women for gold and Indian buildup of gold reserves is playing an important role in increasing gold prices in USA.
United States of America
United States of America is the largest economy of the world.US economy plays the most important role in affecting the worldwide gold prices .The US interest rates,US buildup of gold reserves and US dollar value are two most important factors influencing the worldwide gold prices.US economy is following a very steady path for last 3 years. Investors buy gold in the time of economic instability and recession.So,this economic stability is making gold less attractive for the investors.Recent surge in gold prices in USA is mainly due to economic slowdown in china,low interest rates in USA and Brexit referendum. Currently ,USA has 8133.5 tonnes of gold reserves and they are largest gold reserves in the world.
EU and Britain
EU and Britain has a very important role to play in influencing gold prices in USA.The gold prices soared to $ 1362 /ounce immediately after the Brexit referendum results.The economic slowdown in Germany and France also makes gold more attractive to the investors.