Most of my readers love trading Gold, but only few know what impacts it or how it is impacted…

History of Gold

Gold was valued as a symbol of power, wealth, and divinity.

Ancient Egyptians, Mesopotamians, and Chinese used gold for jewelry, temples, and early barter.

Lydians (modern-day Turkey) minted the first gold coins.

Gold started being used as money (alongside silver) → made trade easier across empires.

Greece, Rome, and Persia used gold coins heavily for international trade.

Gold was hoarded by kings and the Catholic Church. (Middle ages)

Britain (1816) officially set money to be backed by gold — “Gold Standard.”

Soon other countries followed (U.S., Europe, Japan), linking paper money to a fixed amount of gold.

Gold backed money system ended when President Nixon ended direct convertibility to US dollar.

Gold “floated” freely for the first time — no longer pegged at $35/oz.

Now, gold is both an investment (inflation hedge, safe haven) and a highly liquid traded asset.

We all know it as XAU/USD on our brokerages

Now that you know history we can say that Gold is a tangible asset that is used as safe haven investment.

What is a safe haven asset?

This is an asset class that is investment considered in risk off market conditions. Wars, global economical problems (tariffs), supply chain disruptions, pandemics all trigger money to be moved from risk on assets ex. stocks to risk off, Gold.

🎯 Think of it Like This

• Gold loves fear (wars, crashes, inflation surges).

• Gold struggles when the economy is strong and interest rates are rising fast.

Impacting factors

Interest rates

Lower interest rates → Gold usually rises (because opportunity cost of holding gold falls).  Higher rates → Gold usually falls (better returns elsewhere).

Inflation

Higher inflation → Gold usually rises (seen as a hedge).  Lower inflation → Gold can fall.

U.S. Dollar (USD)

Gold is priced in dollars.  Strong dollar → Gold tends to fall. Weak dollar → Gold tends to rise.

Central Banks

Central banks (like the Fed or ECB) buying or selling gold reserves affects demand directly.

Geopolitical Risk

Wars, political instability, financial crises → People rush into gold (“safe haven” demand).

Stock Market Performance

Big drops in stocks → Gold can rise as people seek safety. Strong stock market → Gold can weaken.

Supply & Mining Costs

Mining disruptions, higher costs → Can push gold prices up. But demand usually matters more than supply.

Speculation & ETFs

Flows into gold ETFs (like GLD) and speculative futures traders impact short-term price movements.

Orderblocks?

This is a joke by the way… Or is it.

U.S. 10-Year Treasury Yield

Higher yields hurt gold

CPI and PCE Inflation Data

High inflation boosts gold

Fed Meeting Results (FOMC)

If dovish → Gold up; if hawkish → Gold down.

Even Bitcoin now sometimes competes with gold during financial panics…

All of impacting factors will only be pieces of the puzzle. True impact is how the whole puzzle is constructed.