Forex gold news can be both bullish and bearish, making it crucial to read it carefully before placing your trades. This year, a number of important factors will affect the value of gold, including global economic activity and inflation expectations. In addition to gold prices, investors will also want to be aware of the latest events in China and Japan. The latter’s quarterly GDP release is expected to be a key event for the global economy. If the data are not as positive as expected, gold could struggle to find demand in the global economy.
Gold’s spot price is determined by trading activity in the decentralized OTC (over-the-counter) markets. In these markets, prices are negotiated directly between participants, and most gold transactions are conducted electronically. In addition to this, financial institutions play an important role as market makers, providing the “bid” and “ask” prices in the spot market.
Currency market news is vital for active day traders and long-term investors alike. FX Leaders is a great example of a good source of currency market news. Additionally, there are many free news services online. Some of these offer updates for free, while others require a subscription fee. Depending on your needs, a free news service may be a good option.
Interest rates, currency movements, and global politics can influence the gold price. The dollar is the benchmark currency for gold, so when the USD rises, the price of gold will follow suit. If the USD is devalued, gold will fall and vice versa. If interest rates rise, gold prices will rise.
The dollar has risen in value against other currencies of late, and recently hit a twenty-year high. Inflation fears are also a major factor in driving up the value of gold. Gold is a safe haven for investors, as it serves as a hedge against debasement and inflation.
During the day, the price of gold fluctuates depending on the price of the London Gold Fix. The London Gold Fix was a twice-daily auction in London until 2015 when the LBMA took over responsibility. The LBMA changed the price-matching mechanism from a physical auction to an electronic one.