What Moves Gold Prices? A Framework for XAU/USD

The main drivers

Gold pays no interest, so it often competes with interest-bearing assets. When real yields (interest rates minus inflation) fall, the opportunity cost of holding gold falls too, which has historically tended to support prices. The reverse can weigh on gold.

Because gold is priced in dollars, a stronger US dollar can make it more expensive for holders of other currencies, while a weaker dollar can have the opposite effect.

Central bank purchases and safe-haven demand during geopolitical stress can also influence prices. None of these relationships is fixed.

A simple checklist

• Check the economic calendar for US CPI, NFP and FOMC dates.
• Note the trend on the daily chart and mark major support and resistance zones.
• Remember gold can move sharply; size positions with the position size calculator.

Key takeaway

Combine the macro picture with clear chart levels, and always define risk before entering a trade.