Forex Trading

What is Gold? What influences the price of Gold (XAU)?

Find out more about trading Gold (XAU) and what influences the gold commodity

Gold Bullion XAU

The Gold is commonly termed as XAU index in economic markets. It is an index which expresses the volume of shares of companies which are mining gold and silver and are listed on the Philadelphia Stock Exchange. It includes a number of companies which are involved in the gold and silver mining industry. It is an index which means that its mere a figure calculated on the price of a set of individual stocks. In other words, we can say that it is a way by which the over all gold and silver mining industry is tracked.

XAU is the most extensively trailed stock index of gold stocks. XAU can not be directly bought or sold, however its future value can be bought or sold. With the ever-escalating universal interest in the gold trade, it is time to take another look at gold and the Philadelphia Stock Exchange Gold and Silver Index from a short-term perception.

There are some brilliant proprietary gold stock indices created by a variety of analysts, but none have yet triumphed in the battle for widespread admiration and following. Gold XAU acts as a barrier against the inflation.

The price of Gold XAU is also connected with the price of crude oil. Since the spike in the crude oil prices over the last a few months, it has been noticed that the price of Gold XAU has also increased a lot. The conflict between Iran, which is the fourth largest crude oil producer and the Western countries, has created world wide concern, thus increasing the price of oil and gold at the same time.

Gold is considered as an alternative to the world’s reserve currency – the US Dollar. It means that the Gold and US Dollar are inversely proportional. It clearly deduces that when the gold prices rise, the dollar goes down.

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