Editorial Tools Latest

XAU/USD Exchange rate

Asset rates

See all assets

Asset rates

See all assets

Editors’ Picks

US Dollar surges post-Fed, uncertainty remains

US Dollar surges post-Fed, uncertainty remains

The EUR/USD pair closed the week below 1.1500, not far above a fresh multi-week low of 1.1454. The US Dollar (USD) rallied following the Federal Reserve’s (Fed) monetary policy announcement, the sole market catalyst this past week.
Gold: Bulls regain control; the next leg higher remains uncertain

Gold: Bulls regain control; the next leg higher remains uncertain

The precious metal started the week in quite a bearish mood, further extending the almost uninterrupted leg lower after August tops near the $4,700 mark per troy ounce. However, market sentiment made a U-turn in the second half of the week. It was not the Federal Reserve (Fed), reignited geopolitical tensions, the US Dollar (USD) or Treasury yields.
BoJ Recap: Not as hawkish as expected

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.
Bitcoin: BTC shrugs off CLARITY Act setback and hawkish Fed

Bitcoin: BTC shrugs off CLARITY Act setback and hawkish Fed

Bitcoin (BTC) price action has remained resilient this week, trading above $78,000 at the time of writing on Friday, heading toward a key resistance zone. Institutional demand shows early signs of weakness, with spot Exchange Traded Funds (ETFs) on track for a second straight week of outflows, with over $420 million recorded through Thursday amid escalating Middle East tensions.
Forecasting the upcoming week: Trump, Xi, oil, tariffs and PMIs

Forecasting the upcoming week: Trump, Xi, oil, tariffs and PMIs

A very positive week saw the US Dollar (USD) climb to new seven-week tops, mostly backed by the hawkish tilt at the FOMC event on Wednesday while unabated strength in Crude Oil prices have also underpinned the move during the first half of the week.

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.