What actually drives the XAU/USD price day to day?
Real interest rates and the US dollar are the two heaviest drivers of XAU/USD, because gold pays no yield and is priced in dollars. When yields on inflation-protected bonds rise, holding gold costs more in forgone income, and the price usually feels it. Dollar strength works the other way, making gold dearer for buyers holding other currencies.
How much does the US dollar affect gold for an Australian trader?
A lot, indirectly. XAU/USD is quoted in US dollars, so every AUD-based trader carries a second exposure on top of the gold move. A flat gold price can still produce a profit or loss in your account once AUD/USD shifts. Check the AUD/USD rate alongside the gold chart before you size a position.
Why does gold react to central bank buying and ETF flows?
Official-sector demand and ETF holdings change the physical balance of the market, so they move price when they are large or persistent. Central bank purchases absorb supply that would otherwise reach the market, while ETF inflows and outflows shift how much metal is held in vaults versus traded. Both are slow forces, not signals for a single day.
Do interest rate decisions and inflation data move gold more than other news?
Rate decisions and inflation prints are usually the scheduled events that move XAU/USD most, because they reset expectations for real yields and the dollar. Their impact depends on how far the result sits from what the market had already priced. Geopolitical shocks can dominate, but they are unpredictable in timing and size.
How do I measure a gold move in pips or dollars per ounce?
Gold is quoted in dollars per ounce and one pip is 0.01, so a move from 4275.0 to 4276.0 is 100 pips. One standard lot is 100 oz, which makes each 0.01 move worth $1 per lot. Our pip value calculator converts any move into your account currency, including the AUD conversion.
