What is Gold?
A precious metal that has historically served as a store of value and inflation hedge. Drivers: real interest rates (lower real rates = higher gold), USD strength (inverse), central bank purchases, jewelry demand (India, China), geopolitical stress. Held by central banks as part of FX reserves. Tradable via physical, futures, ETFs (GLD), and miners.
Why does Gold matter for investors?
In commodities, Gold is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
How is Gold used in practice?
Drivers: real interest rates (lower real rates = higher gold), USD strength (inverse), central bank purchases, jewelry demand (India, China), geopolitical stress. Held by central banks as part of FX reserves.