What moves the price of gold

No single thing moves gold. It helps to know the main forces, so a sudden move does not take you by surprise.

The US dollar

Gold is priced in dollars. When the dollar strengthens, gold often falls, and when the dollar weakens, gold often rises. This is a tendency, and it can break down for long stretches.

Real interest rates

Gold pays no interest. When real yields (interest rates after inflation) rise, holding gold can look less attractive. When they fall, the cost of holding it drops. This is why Federal Reserve decisions matter so much to gold.

Inflation and data

US inflation figures, jobs reports and central bank meetings can all move gold within seconds. Check an economic calendar before each session, so you know what is scheduled.

Uncertainty and demand

Geopolitical stress can increase demand for gold, and central banks and jewellery buyers affect the longer-term picture. But the reaction to a headline is hard to predict, and gold sometimes falls on news you would expect to lift it.

Key point

Knowing what moves gold helps you avoid surprises. It does not tell you where the price will go next. Your stop is what protects you when the market does something you did not expect.