Gold price is widely followed in financial markets around the world.
Furthermore, Gold was the basis of economic capitalism for hundreds of years until the repeal of the Gold standard, which led to the expansion of a fiat currency system in which paper money doesn’t have an implied backing with any physical form of monetization.
Finally, AU is the code for Gold on the Periodic table of elements, and the price above is Gold quoted in US Dollars, which is the common yardstick for measuring the value of Gold across the world.
Key reports/ factors that move GOLD market
- Any world events
Financial crises and elections create financial uncertainty and in turn, impact demand for and the price of gold.
- Non-Farm Payroll
1st Friday of month by Bureau of Labor Statistics; indicates how many jobs U.S. economy has added /lost in last month, key driver of Fed policy and indicator of economic growth.
- Quarterly Gross Domestic Product Estimates
Monetary value of all finished goods and services produced within a country; broadly measures overall economic activity.
- CPI (Consumer Price Index)
Mid-month by BLS; measures inflation or cost-of-living changes, tracking the average price of a basket of goods and services. Is a key driver of Fed policy.
- FOMC (Federal Open Markets Committee)
Meets 8 times a year to set U.S. monetary policy and key interest rate changes; gold markets rise with rate cuts and vice versa.
- U.S. Dollar Index
Measures the value of U.S. dollar relative to a basket of currencies for the U.S.’s most significant trading partners.
- Central Bank monetary policy announcements
Affect size/growth rate of a nation’s money supply, and in turn, interest rates; can include key interest rate changes, buying/selling government bonds, reserve requirements changes.
- PPI (Producer Price Index)
2nd or 3rd week of the month by BLS; a weighted index of prices measured at the wholesale, or producer level; shows trends within the wholesale markets, manufacturing industries & commodities markets.