1. What Is Gold Trading? (XAU/USD and Other Pairs)
Gold’s symbol spelt as “XAU”, why is this? “X” signifies a non-monetary asset, and “AU” comes from Aurum, the Latin word for gold.
Gold trading, often denoted as XAU, involves buying and selling gold as a commodity, typically priced in US dollars (XAU/USD).
It’s one of the most liquid and volatile markets, with billions traded daily, influenced by global demand as a safe-haven asset, inflation hedge, and industrial material.
2. How the Gold Market Works (Spot, Futures, Sessions)
Gold trades nearly 24 hours a day, five days a week, following major financial centres worldwide.
This is possible because the market spans time zones, with overlapping sessions driving the most activity.
Gold Sessions:
- London Session
- New York Session – (highest volume)
3. What Fundamentals Move Gold Prices?
Technicals focus on historical price movements, while fundamentals look at underlying value influenced by global events.
Unlike stocks with company-specific data like earnings or debt, gold is driven by macroeconomic and geopolitical factors that affect its role as a safe-haven and hedge.
Three highly important fundamentals that drive gold prices are listed here, ranked from highest to lowest impact.
| Indicator | Importance | Frequency |
| Interest Rate Decisions | Very High | Monthly/Quarterly |
| US Dollar Strength | High | Ongoing/Daily |
| Geopolitical Uncertainty | Extremely High | Event-Driven/Infrequent |
3.1 Interest Rate Decisions
This is often a very big mover and is highly speculative.
Current Rate: 5.25%
- Expected: No change
- Actual: 5.25%
- Gold falls slightly
- Investors are usually grabbing liquidity
- Current Rate: 5.25%
- Expected: No change
- Actual: 5.00%
- Gold likely spikes aggressively
- Investors flee the USD and hedge using gold
Now, what happened here? This plays into the expression of “buy the rumour, sell the fact”
eg. XAU (Gold)
17th Sept 2025 – 15 minute TF
Before US Interest rate announcement
Previous: 4.5%
Forecast: 4.25%
eg. XAU (Gold)
17th Sept 2025 – 15 minute TF
After US Interest rate announcement
Actual: 4.25%
3.2 US Dollar strength – (DXY)
Gold’s price is closely tied to the US economy and the strength of the US dollar. When the US economy reveals signs of weakness, i.e:
- Employment data
- Inflation (CPI)
- Interest rates
- GDP data
- Ect….
Gold usually spikes, as investors will use gold to hedge against uncertainty.
eg. DXY – Dollar Basket
1st Aug 2025 – 15-minute TF
Nonfarm payroll
Previous: 14K
Forecast: 110K
Actual: 73K
eg. XAU (Gold)
1st Aug 2025 – 15-minute TF
3.3 Geopolitical Uncertainty
Gold is also heavily reliant on uncertainty, influenced largely by numerous global factors. Global events that can affect gold’s price:
- War
- Climate
- Trade tensions
- Elections
- ect….
eg. XAU (Gold)
2nd April 2025 – 4-hourly TF
Before Trump’s liberation day
eg. XAU (Gold)
2nd April 2025 – 4-hourly TF
After Trump’s Liberation Day
