🏦 US Interest Rates
Higher rates make yield-bearing assets like bonds more attractive than gold, which pays no yield, weighing on its price. Rate cuts tend to support gold.
💵 US Dollar Index (DXY)
Classic inverse relationship: a stronger dollar makes gold more expensive in other currencies, dampening demand. A weaker dollar tends to lift gold.
📊 Inflation & CPI
Gold is traditionally viewed as an inflation hedge, so hotter-than-expected CPI data often pushes investors to add to gold positions.
🌍 Geopolitical Risk
Wars and political crises increase safe-haven demand for gold, pushing prices higher during periods of uncertainty.
🏛️ Central Bank Buying
Rising central bank reserve purchases (notably China, Russia, and India) support structural long-term demand for gold.
📈 Gold ETF Flows
Flows into funds like GLD reflect institutional investor appetite and are often used as an early signal of price direction.