Gold vs. US Dollar (XAU/USD) Spot represents the real-time market price of gold per troy ounce in US dollars. It acts as a key indicator of safe-haven demand, inflation hedging, and central bank policies. The price of gold is influenced by Federal Reserve interest rate decisions, geopolitical instability, and global risk sentiment, making it one of the most actively traded commodities.
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XAUUSD FAQs – Your Questions Answered
Why is gold considered a haven?
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Gold is often regarded as a haven because it tends to maintain its value during periods of inflation, currency depreciation, and geopolitical uncertainty. Its limited supply and global acceptance make it a widely trusted store of value when confidence in other assets weakens.
How do interest rates affect gold prices?
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Interest rates influence gold through opportunity cost. When rates rise, holding gold becomes less attractive compared to interest-bearing assets. When rates fall, gold often benefits as the cost of holding non-yielding assets decreases.
What is gold's typical daily price range?
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Gold commonly moves around USD 10 to 30 per day under normal market conditions. Larger price swings can occur during major economic data releases, central bank announcements, or periods of market stress.
What trading conditions does TMGM offer for gold?
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TMGM offers competitive gold trading conditions, including spreads starting from 0.0 pips on Edge accounts, leverage of up to 1:30, fast execution, and access to the market 24 hours a day, 5 days a week.
How does inflation affect gold prices?
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Gold often performs well when real yields decline. Inflation alone does not guarantee higher gold prices; what matters more is the relationship between inflation and interest rates. When inflation rises faster than rates, gold tends to benefit.