What's happening with the Gold market?

There has been frenzy about the recent price drop of Gold in recent days and all of us wondering what's happening with the commodity and even thinking of putting some investment in the precious metal only for the reason that the price is down by record levels in a year.

I just tried to get to the bottom of the picture only to see what's gone wrong with the yellow metal. From an economist's view one can easily conclude that the demand might have come down triggering the price levels to fall. But is it the reality at the ground? Though an initial high level notion shows that the demand from institutional buyers have declined pushing the prices to lower levels in turn, there are are other global factors that really have had a considerable contribution for this decrease in prices. (see the picture below)

When the article is being written, we could see the Gold prices to recover slightly (was at $1370/ounce), up by around 1%.

The largest consumer of Gold, India, is expected to help the yellow metal's prices to back on track in coming weeks as Akshaya Tritiya is around the corner and wedding season is expected to last till June/July. This would probably boost the consumer demand for the commodity in coming months.

So this could be the right time if you want to make some investments in this high valued commodity!