XAUUSD Fundamental Analysis for Beginners: What Moves the Price of Gold?
XAUUSD Fundamental Analysis for Beginners: What Moves the Price of Gold? Introduction Gold (XAUUSD) is one of the most actively traded instruments in the financial markets. Many traders analyse Gold using technical indicators such as Bollinger Bands, Moving Averages and Price Action. However, understanding fundamental factors can provide important context before entering a trade. Fundamental analysis helps traders understand WHY Gold may be moving. What Is Fundamental Analysis? Fundamental analysis studies economic, financial and geopolitical factors that can influence an asset's price. For Gold, traders commonly monitor: • US Dollar strength • Federal Reserve policy • Interest rates • US Treasury yields • Inflation • Employment data • Geopolitical risk • Central bank demand • Overall market sentiment 1. US Dollar (USD) Gold is commonly quoted in US Dollars. When the USD becomes stronger, Gold can face downward pressure because Gold becomes relatively more expensive for...