What is Gold?
Gold is a precious metal used historically as money, today held by central banks as reserves, by investors via bullion or ETFs (like GLD, IAU), and used in jewelry, electronics, and dentistry. Global gold prices are set on the London Bullion Market (LBMA) and COMEX (US futures), with continuous price discovery via spot, futures, and ETF flows.
Why it matters for investors
Gold is uncorrelated with most financial assets, making it a portfolio diversifier. It typically performs well when real interest rates are negative or falling, when the US dollar weakens, or when geopolitical risk rises. Central banks (notably China, Russia, India, Turkey) have been net buyers in recent years, structurally supporting demand.