What is Gold — plain English
Gold is priced per troy ounce (about 31 grams) in US Dollars. When you see $2,400, that is the price for one troy ounce. Gold has been used as money and stored wealth for 5,000 years. People buy it when they are worried about inflation, war, or economic collapse. Central banks hold it as a reserve asset. It does not pay a dividend or interest, so its appeal is purely about preserving value.
What makes Gold move
US dollar strength — stronger dollar means cheaper gold (they move opposite)
Inflation fears — gold is seen as protection against rising prices
Wars and geopolitical crises — investors flee to safe-haven assets
Central bank buying — China, India, and Russia buy enormous quantities
US interest rates — higher rates make bonds more attractive vs gold
Physical demand from jewellery — India's wedding season matters a lot
The dollar relationship is the most consistent. Gold is priced in dollars. When the dollar gets stronger, it takes fewer dollars to buy an ounce of gold, so the price in dollars falls. When the dollar weakens, it takes more dollars, so the gold price rises. This is why gold often rallies when the Fed cuts rates or signals a weaker dollar policy.
Central bank buying has been a major new driver since 2022. After the US and Europe froze Russia's dollar reserves following the invasion of Ukraine, many countries started reducing their dollar exposure and buying gold instead. China, India, and Turkey have all been buying heavily.
What happened at real events
These are actual price movements at real events. Not simulated.
March 5, 2024
Gold breaks all-time high above $2,100
Two forces combined: central banks (particularly China) were buying at record levels, and the market was pricing in Fed rate cuts for later in 2024. Lower expected future rates reduced the opportunity cost of holding gold, which pays no interest.
October 7, 2024
Israel-Hamas war escalates with major ground operations
Classic safe-haven demand. When armed conflict escalates in a strategically important region, investors move money into assets they trust to hold value during uncertainty. Gold is the oldest and most widely accepted of those assets.
November 6, 2024
Trump wins US election, dollar surges
Trump's election caused a sharp dollar rally on expectations of tariffs, higher US growth, and deregulation. A stronger dollar pushed gold down in the short term. Gold later recovered as geopolitical uncertainty and trade war fears increased over the following months.
Best brokers for Gold trading
Ranked by XAU/USD spread and platform quality. Gold is best traded with low spread and fast execution.
1
Plus500
XAU/USD from $0.30 spread
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2
IG Group
Spot gold + options available
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3
Saxo Bank
Tight spreads, professional platform
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4
Pepperstone
Razor account from $0.12 spread
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5
AvaTrade
MT4/MT5 + AvaOptions for gold options
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Gold trading sessions — when it moves most
| Session | Time (UTC) | Typical activity |
|---|
| Asian session | 00:00 – 08:00 | Low volume, range-bound |
| London open | 07:00 – 09:00 | Volatility picks up sharply |
| NY open | 13:00 – 15:00 | Highest volume, biggest moves |
| US CPI release | ~12th of month, 12:30 UTC | $20-50 moves in minutes |
| Fed decisions | 8 times per year, 18:00 UTC | $30-80 moves possible |
Gold CFD trading involves significant risk. EU brokers cap leverage at 1:20. A move of 1% in gold at 1:20 leverage means a 20% move in your position. This works both ways.