There's always stable demand for gold. What's more, in Forex, it is valued only against the US dollar. These factors put the XAUUSD into the group of popular trading assets.
This quote is highly liquid, which means it is much traded. All the financial markets on earth follow the XAUUSD rate, as gold plays an important part in the market economy.
The XAUUSD is a profit-yielding asset that investors run to during economic crises. It is believed that investing in gold and other precious metals can help save money while currencies devalue, so the XAUUSD price constantly grows in conditions of economic uncertainty.
The asset's volatility rises at the beginning of Asian, European, and American trading sessions. The rate can also fluctuate after substantial changes in the US', Japan's, the UK's, and the EU countries' monetary policies are announced. Besides, GDP and inflation data on the countries above impact the XAUUSD rate, too.
US stats play a particular role as the country's gold reserves are the biggest in the world, and the growth of its macroeconomic indicators consolidates the XAUUSD pair.
The jewelry industry accounts for 50% of the demand for gold in the world. It is also used in medicine, cosmetology, and the production of components of computers and mobile phones.
Russia, China, and Australia are the leading global producers of gold. Switzerland, Great Britain, and India are big gold importers: they buy it for production purposes.
To assess the market situation for the XAUUSD pair, traders use technical and fundamental analysis.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
