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Join The CommunitySpot gold refers to the current price at which gold can be bought or sold for immediate delivery. This price is determined by the live market conditions and reflects the current supply and demand for gold.
Gold is often used as a hedge against inflation because its value tends to rise when the cost of living increases. Investors buy gold during inflationary periods to protect their purchasing power, which can lead to higher gold prices.
Gold prices are influenced by a variety of factors including market demand and supply, geopolitical events, inflation rates, and changes in currency values. For instance, during periods of high inflation or economic uncertainty, gold prices often rise as investors seek a safe-haven asset. Conversely, when the economy is stable, gold prices might decline as investors move towards riskier assets like stocks.
Gold prices typically rise due to increased demand during times of economic uncertainty, geopolitical tensions, and as a hedge against inflation. For example, during the 2008 financial crisis, gold prices surged as investors sought safety, rising from around $700 per ounce in late 2008 to over $1,900 per ounce by mid-2011. Similarly, in 2020, during the COVID-19 pandemic, gold prices reached new highs as global markets faced unprecedented uncertainty.
Additionally, the Russia-Ukraine war impacted gold prices. Gold prices surged to over $2,000 per ounce in early March 2022 as investors sought a safe haven amidst geopolitical instability.
Lastly, ongoing conflicts in the Middle East, such as the tensions between Israel and Palestine, and the conflicts involving Israel and Lebanon, contribute to global uncertainty, further driving the demand for gold.
Volatility of gold is driven by factors such as changes in monetary policy, geopolitical events, and fluctuations in the value of the US dollar. For example, when the Federal Reserve changes interest rates, it can lead to aggressive price movements in gold.
Additionally, geopolitical tensions, like conflicts in major economies, can cause investors to flock to gold, increasing its volatility. Since gold is typically priced in US dollars, fluctuations in the dollar's value can impact prices.
A stronger dollar makes gold more expensive for foreign investors, potentially reducing demand and lowering prices, while a weaker dollar can have the opposite effect.
Gold prices have been historically influenced by several major events. During the 2008 financial crisis, gold prices increased from around $700 per ounce in late 2008 to over $1,900 per ounce by mid-2011.
Another important period was in 2020, when the COVID-19 pandemic led to gold prices reaching all-time highs of over $2,000 per ounce.
Starting your gold trading journey with zForex is simple:
Gold can be invested in various forms, including physical gold (bullion and coins), gold ETFs, gold mining stocks, and gold futures. Each form has its own risk and return possibility.
EUR/USD rebounded near 1.1330 as Treasury yields fell and traders awaited Eurozone GDP data.
Detail Euro and Pound Rise on U.S. Fiscal Worries (05.22.2025)The euro and British pound extended their rallies on Thursday amid mounting concerns over the U.S. fiscal outlook, following Moody’s downgrade of the U.S. credit rating.
Detail Silver Holds Strong as Dollar Falters (05.21.2025)EUR/USD pushed higher toward 1.1330, lifted by a weaker dollar and cautious optimism around U.S. tariff de-escalation.
Detail Gold Falls as Dollar Slips on Credit Downgrade (05.20.2025)Risk sentiment shifted this week as Moody’s downgraded the US credit rating, weakening the dollar and supporting major currencies and commodities.
Detail Dollar Strengthens on Trade Deal Pause (05.19.2025)The U.S. dollar gained traction Monday after the U.S. and China agreed to pause retaliatory tariffs for 90 days, prompting a gap lower in EUR/USD to 1.1064. Meanwhile, Moody’s downgraded the U.S. credit rating, citing fiscal concerns, sparking risk aversion and supporting safe-haven assets like gold and the yen.
Detail Gold and Silver Diverge as Risk Appetite Returns (05.16.2025)The euro advanced near $1.12 as the dollar softened, even as ECB rate cut bets remained firmly priced in. The yen strengthened for a fourth straight day despite a contraction in Japan’s Q1 GDP.
Detail Inflation Softens and Trade Momentum Builds (05.15.2025)The euro regained ground near 1.1200, supported by reserve status momentum and a weaker dollar, while the Japanese yen strengthened on growing pressure to eliminate U.S. car tariffs.
Detail Soft CPI Lifts EUR, Weighs on USD (05.14.2025)Soft U.S. inflation data weakened the dollar and lifted risk sentiment. EUR/USD climbed toward 1.1200, supported by falling U.S. CPI, while USD/JPY slipped toward 147 as the yen rebounded.
Detail US CPI and Tariff Talks Take Market Focus (05.13.2025)Markets opened Tuesday with a cautious tone as traders reviewed the recent US-China trade agreement and awaited key US inflation data.
Detail Dollar Gains on U.S.-China Deal Optimism, Gold and Euro Slip (05.12.2025)The U.S. dollar strengthened on Monday following positive signals from U.S.-China trade talks in Geneva, pressuring the euro to near $1.1240 and the pound to $1.3275. The yen weakened to a one-month low past 146 as safe-haven demand faded.
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