Why is gold price rising?

You must be wondering why the price of Gold must be increasing, even though you are not using much of gold in your day to day life. After going through all the articles on the net I think following are the reason for the rise.

1) Easy monetary policies by central banks created lots of cash in hand of investors. But the inflationary pressure made the investors to turn to Gold instead of paper money & they in turn did bid higher for Gold.

2) As oil prices are going up and also as Dollar is primary currency in oil trading, exporters of oil started accumulating Dollars which resulted in more demand of Dollars. The consequence was OPEC members started diversifying their foreign reserves to buy Gold. This increased the demand for Gold.

3) As Gold prices dropped to low of $252 an ounce in 1999 from the high of $850 an ounce in 1980, the mining of Gold was discouraged due to short of money causing the short in supply of Gold.

4) As U.S. economy was hurt by subprime issue, the Federal Reserve cut the interest rates in effort to keep economy from tipping into recession. During this period many of investors started buying Gold as alternate reserve i.e. Gold, thus driving up the demand.

Hence as Demand exceeded the Supply the final result was increase in price of this yellow metal.