Gold is the oldest precious metal known to man and for thousands of years it has been valued as a global

currency, a commodity, an investment and simply an object of beauty.

 Gold, the most sought-after of all precious metals, is acquired throughout the world for its beauty,
liquidity, investment qualities, and industrial properties. As an investment vehicle, gold is typically
viewed as a financial asset that maintains its value and purchasing power during inflationary periods.
 Gold has a long and fascinating usage history in a diverse range of industries and applications. In each of
the applications it is used, gold provides an outstanding performance due to its unique properties of
being one of the most malleable and ductile metals with high melting point and easy recyclability. Gold
is a material of choice in medicine and dentistry as it is biocompatible. In recent years it has emerged as
a key nanomaterial. Global demand for gold is centered on four primary categories: jewellery,
investment, central bank reserves, and technology.
 Risk management is of critical importance for gold value chain participants, such as mining companies,
processors, companies dealing in gold and gold products, jewellers, and even governments which rely on
the proceeds of bullion consumption and trade. Modern hedging techniques and strategies, including
market-based risk management financial instruments, such as gold futures, can improve efficiencies and
consolidate competitiveness

 Factors Influencing the Market

 Above-ground supply of gold from central bank sales, reclaimed scrap, and official gold loans.
 Hedging interest of producers and miners.
 World macroeconomic factors, such as movement in the dollar and interest rate, and economic events.
 In India, gold demand is also influenced by seasonality, that is, marriage and harvesting.

GOLD Gold (Au) is primarily a monetary asset and partly a commodity. It is the world's oldest
international currency and an important element of global monetary reserve. APPLICATIONS Gold
has diverse applications being one of the most malleable and ductile metals with high melting point
and easy recyclability. It is useful in medicine and dentistry and, lately, has emerged as a key
nanomaterial. Global gold demand hinges on four main categories: jewellery, investment, central
bank reserves, and technology. MARKET CHARACTERISTICS Ÿ The gold market is highly liquid. Gold
held by central banks and other major institutions and as retail jewellery is reinvested in the market.
Ÿ As the stock of gold outweighs its demand, it is argued that the core driver of the real price of gold
is stock equilibrium rather than flow equilibrium. Ÿ Gold has low or negative long-period correlation
with other asset classes, and so stands out as an effective diversifier even during periods of financial
instability. MARKET SCENARIO, 2016 Ÿ Annual Jewellery demand fell to a 7-year low of 2041.6 t in
2016, while Investment demand was up by 70%, reaching its highest level since 2012. Demand for
ETFs and similar products was highest since 2009. Ÿ Total supply of gold increased by 5% to 4570.8 t
in 2016—mine production went up to 3236.0 t while recycling surged by 17% to 1308.5 t. Ÿ
Consumer demand in India was 675.5 t in 2016, second to 913.6 t in China. Ÿ Gross bullion imports in
India was 648.3 t, of which dore constituted a significant 141.9 t. Ÿ Indian annual Jewellery demand
ended 2016 down by 22% at 514.0 t, after a year of upheaval in the gold industry, while demand for
bar & coin fell by 17% to 161.6 t. The Gold Standard earlier defined monetary policy, but later was
supplanted by fiat currency from the 1930s. GOLD DEMAND AND SUPPLY TABLE (TONNES) CO-
MOVEMENT OF DOMESTIC AND INTERNATIONAL
Troy ounce (abbreviated "oz t")

Troy ounce is commonly used to measure the mass of precious metals,

such as gold. 1 troy ounce is equal to 31.1034768 grams, or 1/12 per troy
pound (1 troy pound ≈ 373.24 grams, that is lighter than avoirdupois
pound), distinguishing from avoirdupois ounce which equals to 28.3495231
grams. In modern times, the troy ounce is the only measurement unit of
troy weights system is widespread used in the British Imperial and
American. In fact, the gold fixing price is based on the unit of troy ounce.