Gold price gives a clue about the world economy
It is reported that the economists have warned that the world economy has fallen into a deflation situation. They have pointed out that the collapse in world share market is a side affect of it.
The IMF has also announced about this situation.
The economists point out that the change in gold prices is a good index to measure the changes in the world economy.
At the beginning of the year though it is said that the American economy had increased by 4%, there was a 3% deflation as shown by the gold prices.
Later the gold prices increased and with parallel to that the economy increased.
But, as at now, the gold prices are decreased and it shows the deflation in the economy.