Forex rate chart XAU USD
Gold vs US Dollar
XAU USD is a very expensive asset with an ideal combination of necessary trading properties: liquidity, volatility, technicity. Market spot gold has benchmark liquidity - this asset can be reliably sold at any moment.
The trading instrument - Gold US Dollar: has basic value for international currency markets as the final monetary from of any currency; acts as a guarantee of price stability for many global commodities as a from of money for commodity operations; used as the most reliable form of bank, property, and state guarantees.
The price of spot gold is set according to the international standard in US dollars for a troy ounce, i.e. 1 lot of gold is equal to 10 oz. (troy ounces). There is always enough of forex XAU USD volatility to earn successfully in case of tough money management both on long-term trends and on intraday movement.
Factors that influence Gold US Dollar rate forecast: actions taken by the main entities of metals spot market: jewelry and high-tech industry, interests of countries' central banks, speculative operations with capital; level of commodity offer on the part of gold-mining companies; fundamental phenomena: weather and military catastrophes, political decisions and crises, interest rates and economic statistics, situation on stock markets; price of US dollar affects the value of spot gold directly: if dollar falls investors prefer to turn their assets into the precious metal; the use of gold for currency interventions, short-term stabilization of economy or political pressure.
XAU USD takes technical analysis perfectly well on a stable market, but Gold US Dollar Forex forecast and the behavior of gold are always wrong before the publication of important news - it is better to restrain from trade in that period. The speculative volatility of XAU USD leads to fast losses; therefore, beginners and small deposits are strongly recommended not to work with it.