XAU/USD Exchange rate

Editors’ Picks

USD/JPY turns lower toward 157.00 as USD slips on US-Iran deal hopes

USD/JPY turns lower toward 157.00 in Asia on Wednesday, despite the release of hawkish BoJ June meeting Minutes and rising Japanese wages. A broadly weaker US Dollar, amid US-Iran peace deal hopes, weighs on the pair amid looming intervention risks.

AUD/USD revisits two-month highs above 0.7050 amid fresh USD weakness

AUD/USD is finding fresh buyers and revisits two-month highs near 0.7055 in the Asian session on Wednesday, shrugging off weak Chinese RatingDog Services PMI for July. The pair draws support from a renewed US Dollar downside amid hopes for a US-Iran deal on Hormuz reopening. Mideast headlines and US ISM Services PMI remain in focus today.

Gold retakes $4,100, cheers US-Iran peace deal progress

Gold is catching a fresh bid, retaking $4,100 in the Asian session on Wednesday. Optimism over a potential US-Iran peace deal and the full reopening of the Strait of Hormuz keep the US Dollar undermined, helping the bullion to resume its previous rebound ahead of US ISM Services PMI data.

Ethereum holds steady below $1,900 as retail distribution rises

Ethereum (ETH) continued trading flat on Tuesday following modestly increasing exchange net flows and continued distribution across retail wallets. Ethereum on-chain data shows mixed sentiment across several wallet cohorts.

RBI set to keep interest rates unchanged as inflation risks persist

The Reserve Bank of India is set to announce its bi-monthly monetary policy decision on Wednesday at 10:00 AM IST (04:30 GMT), another meeting coming at a time when uncertainty remains high over the duration and economic fallout of the ongoing Middle East conflict.

Majors

Cryptocurrencies

Signatures

XAU/USD, GOLD

In the Forex market, Gold functions as a currency. The particularity of Gold is that it is traded against the United States Dollar (USD), with the internationally accepted code for gold being XAU. Known as a safe-haven asset, Gold is expected to appreciate in periods of market volatility and economic uncertainty. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
The XAU/USD pair tells the trader how many US Dollars are needed to purchase one troy ounce of Gold.

HISTORIC HIGHS AND LOWS FOR XAU/USD

All-time records: Max: $2,790.11 on 25/10/2024 – Min: $34.78 on 27/01/1970
Last 5 years: Max: $2,790.11 on 25/10/2024 – Min: $1,451.32 on 13/03/2020

* Data as of December 2024

ASSETS THAT INFLUENCE XAU/USD THE MOST

Currencies: The US Dollar (USD) and the Euro (EUR) are the primary currencies influencing Gold prices. Other important currency pairs include EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD, and USD/CAD.
Commodities: Silver and Gold are the most important precious metal commodities.
Bonds: Influential fixed-income securities include the German Bund (a federal government-issued bond) and the US Treasury Note (T-Note).
Indices: Key indices related to Gold and mining include the HUI (NYSE Arca Gold BUGS), the XAU (Philadelphia Gold and Silver Index) and the GDM (NYSE Arca Gold Miners Index).
Exchanges: The most important stock exchanges for Gold are the New York Mercantile Exchange (COMEX), the Chicago Board of Trade, the Euronext/LIFFE, the London Bullion Market, the Tokyo Commodity Exchange, the Bolsa der Mercadorias e Futuros and the Korea Futures Exchange.

INFLUENTIAL ORGANIZATIONS FOR THE XAU/USD

WGC (World Gold Council) is the market development organization for the Gold industry. Its aim is to stimulate and sustain demand for the precious metal.
LBMA (London Bullion Market Association) is an organization whose members participate in this wholesale over-the-counter market for trading Gold and Silver. It is loosely overseen by the Bank of England. Most LBMA members are major international banks, bullion dealers, and refiners.
COMEX (Commodity Exchange) is the primary market for trading metals. The COMEX merged with the New York Mercantile Exchange (NYMEX) in 1994 and joined the CME Group in 2008.
CGSE (Chinese Gold and Silver Exchange Society). It is an organization of Gold trading firms in Hong Kong that are participants of the Chinese Gold and Silver Exchange, the first exchange in Hong Kong.
Central banks like the Federal Reserve (Fed), the European Central Bank (ECB) or the People’s Bank of China (PBoC) significantly influence Gold prices through their monetary policies.

INFLUENTIAL PEOPLE FOR THE XAU/USD

Neal Froneman, the World Gold Council’s Chairman.
Scott Bessent, the US Treasury Secretary.
Xi Jinping, President of the People's Republic of China.
The London Bullion Market Association members.

CIRCUMSTANCES THAT INFLUENCE XAU/USD THE MOST

Demand and supply: The balance between global Gold demand and its availability impacts its price.
Economic uncertainty and currency devaluation: Gold is widely known as a safe-haven asset for investors in periods of economic uncertainty or when a currency faces devaluation.
Practical applications: The use of Gold in technology innovations, jewelry manufacturing and other industrial applications.