If the price of gold falls .. the price of silver also ran in the same direction. Silver declined by Rs.600. With this, the price of silver fell to Rs 74,500. The main reason for this is the slowdown in demand from industry units and coin makers. There are many factors that affect the price of gold. Many factors such as inflation, global market fluctuations, gold reserves at central banks, interest rates, the jewelry market, geographical tensions, and trade wars all have an impact on the pound.