This video outlines the key factors that are currently pushing and pulling the gold market. By the time you finish this video, you will have a key understanding of the four major drivers that are influencing gold right now: inflation hedge, yields, USD, and seasonal trades.

  1. Inflation hedge: Many traders see gold as an inflationary hedge The desire to own gold in a stagflationary environment can be one of the key drivers underpinning sentiment for gold buying.
  2. Yields: Gold is driven by the interplay between inflation, bond yields and the U.S. dollar. Understanding the relationship between these factors is very essential to understanding the path gold will likely take going forward.
  3. U.S. dollar: The USD can gain value when there is a global slowdown, when the US outperforms the rest of the world, or when the U.S. displays an aggressive monetary policy. This is significant because, typically, there is an inverse correlation between USD and gold.
  4. Seasonal patterns: Using Seasonax, we can discover gold’s patterns during the summer months.

We are looking at the combination and interplay of these four factors to show in which environments and future events to expect potential gold gains or losses.

HYCM Lab is a financial analysis source that provides regular insights on how global news affects the markets including forex, commodities, stocks, indices, and cryptocurrencies*. Run by the HYCM team, it equips traders with everything needed to make informed trading decisions.