What is the reason of current increase in Gold prices ?

The basic answer is supply and demand. Investors will look at the road ahead and try to predict where the supply and demand for gold is going to be. Right now we have global deflation, which means that if you have a half a tank of gas and are thinking about filling it up, you would rather wait until tomorrow if you think the price will go down for a gallon of gas overnight. This puts downward pressure on the price of gas in a sort of self fulfilling prophecy and gas goes down. Now if you add fear to the consumer psyche consumers will be very tight with spending on all purchases. But eventually if demand for products is artificially stimulated and the supply of the product does not change, the result is the opposite of deflation, which is inflation and hyperinflation. With hyper inflation the buying power and value of a dollar goes down. Consumers who are buying gold right now are predicting hyper inflation. With a limited supply of gold the price must go up when demand increases for gold. Why gold? Because throughout human history gold has been accepted as a medium of exchange on an international level, which can therefore buy food for humans wanting to live through an economic crisis. Supply and demand is my bottom line answer to your question. Limited supply of gold combined with a surge in demand for a variety of reasons some of which I discussed above.

Gold is different from other precious metals such as platinum, palladium and silver because the demand for these precious metals arises principally from their industrial applications. Gold is produced primarily for accumulation; other commodities are produced primarily for consumption. Gold’s value does not arise from its usefulness in industrial or consumable applications. It arises from its use and worldwide acceptance as a store of value. Gold is money.

In contrast to other commodities, gold does not perish, tarnish or corrode, nor does gold have quality grades . Gold mined thousands of years ago is no different from gold mined today. Therefore, gold existing in the aboveground gold stock is interchangeable with newly mined gold.

In the coming decade, as the dollar suffers one of the great meltdowns in monetary history, gold will reclaim its place at the center of the global financial system.

Although the prices of gold and oil don't exactly mirror one another, there is no question that oil prices do affect gold prices. If oil prices rise or fall sharply, investors can expect a corresponding reaction in gold prices, often with a lag.

Gold is bought and sold in U.S. dollars, so any decline in the value of the dollar causes the price of gold to rise. The U.S. dollar is the world's reserve currency - the primary medium for international transactions, the principal store of value for savings, the currency in which the worth of commodities and equities are calculated, and the currency primarily held as reserves by the world's central banks. However, now that it has been stripped of its gold backing, the dollar is nothing more than a fancy piece of paper.

When all else fails, governments rescue themselves with the printing press, making their currency worth less and gold worth more. Gold has always risen the most when confidence in government is at its lowest.

read this site and clear your doubts

http://goldprice.org/news/2005/05/reason…

Due to the bad situation in the stock market, the people's other choice is investing in GOLD

try this website you will find an article about increasing in gold price

http://gold-price-blog.info/

Gold has always been a safe haven for investment in times of trouble,and we are in troubled times

As far as I have listened/think is it is because the money makers have shifted from Crude to Gold.

i think investor and speculator are betting on safe heaven like gold.

Its just due to worldwide crisis..

Today's rate for gold was 13700 per 10 grams