What drives the price of gold?
1. Central Banks
Net purchases of gold by central banks can affect the price.
2. U.S Dollar Value
When the USD is strong, people are more optimistic and prefer to trade in USDs, pushing the price of gold down.
3. Economic Uncertainty
Gold is seen as a “safe haven” to store wealth during volatile and uncertain times.
4. Worldwide Jewellery Demand
Around half of all gold demand is driven by jewellery with China, India and the US being primary buyers.