Yesterday, gold price rally to its highest we have seen XAUUSD trade at since 2012. However, the precious metal quickly gave up its gains.
In this section, you will find important Gold price news, actionable trading ideas, and a live XAUDUSD chart to help you understand the markets better.
The gold price is a key factor that affects financial markets and the global economy. Gold is one of the top commodities, only behind crude oil, and is trading almost 24 hours a day Monday to Friday. London, New York, Tokyo, Zurich, Hong Kong, and Sydney are where most of the gold trading activity takes place.
Gold historically has been thought of as a store of wealth and is used as a luxury good as much as an investment.
Gold tends to outperform during periods of financial turbulence or economic weakness. Gold attracts safe heaven inflows during periods of high risk in the markets. The yellow metal has protected portfolios against inflation. Historically when inflation has been higher than 3% the price of gold has increased by about 15 percent.
The factors that affect the price of Gold among others are supply and demand, interest rates, central banks, geopolitics, currency fluctuations, etc. The US dollar remains the benchmark currency for gold. Many economists note that because of gold’s intrinsic value, it is seen more as a currency than a commodity, and that is why gold is referred to as monetary metal. Gold is highly inversely correlated to the U.S. dollar and bond yields. When the value of the USD increases gold becomes more expensive for other nations to purchase. This causes gold demand to fall, which is why there’s generally an inverse relationship between the Greenback and the gold price.
Live Gold Price Chart
Gold Price News (XAUUSD)
Gold price action on the XAUUSD daily chart is extending its intraday decline towards the 1762 support after upbeat US ISM Manufacturing PMI data helped boost sentiment on the greenback within the last hour.The US Dollar had been punished by safe-haven seekers on the XAUUSD, with the gold price hitting […]
Gold price trades higher for one more day making fresh eight-year highs as the demand for safe-haven assets rise amid rising concerns for the second wave of new coronavirus infections that might halt the recovery of the global economy. Doctor Fauci, of the National Institute of Allergy and Infectious Diseases, […]
Gold price trades lower today amid optimism for a fast recovery after better than expected economic data. In the USA the Case-Shiller Home Price Index rises 4% in April above the expectations of 3.8%.
The second quarter offered some great trading opportunities across all asset classes. As we head into the new quarter, I think market volatility will decline, yet I still think it will be a great quarter to trade.
My rationale is that traders in stocks and FX, overreacted on the way down, and now look to overact on the way up. The best example of this is EURUSD and AUDUSD, where we saw massive losses followed by almost complete retracements.
In stock markets, the Nasdaq 100 managed the same feat, while both the Dow Jones and S&P500 still has room to go. I think the same is true for crude oil prices.
To know more about what our analysts think, keep on reading.
- EURUSD Gains as Europe Eases Lockdowns, Price to Turn Lower in June
- GBPUSD Could Reach its Zenith When the UK Economy Reopens
- USDJPY will Fluctuate Violently in Q3 as Japan’s Economy Worsens Under the Coronavirus Pandemic
- AUDUSD: Covid-19 Engulfs the Australian Economy
- NZDUSD: Negative Interest Rates Dominate the Financial Landscape
- Stocks battle back from Covid-19 crash ... but for how long?
- Covid-19 and geopolitical factors continue to impact the price of gold
- Crude oil prices stage a volatile recovery
- Cryptocurrencies first big test
Gold price gives back some early gains from the Asian trading session as the price hovers close to 2020 highs. The gold price had a volatile session on Friday, as investors dumped equities amid the rising fears of a second coronavirus wave.
Gold price spikes in the last two hours on the XAUUSD chart, as risk aversion mounts. Sign up to find out more.
Gold price retreated slightly during the Asian session as traders reflected on the surging new cases and the new Fed requirements for banks. The slight decline today comes two days after the price formed a shooting star pattern on the daily chart.
Gold price rallied to its highest price since November 2012 yesterday. However, XAUUSD quickly gave up its gains. Could this be a pullback or retracement?