What factors drive the price of gold, and who sets it? How does the global gold market work? Here’s what you need to know to understand the gold price.
Understanding the Price of Gold
10 minutes read
Key takeaways
While regional gold prices are significant for local markets, the LBMA Gold Price is a key benchmark for the entire gold market.
Key factors influencing gold prices include supply and demand, investor sentiment, inflation, and movement in the U.S. dollar.
Since gold frequently rises when the economy declines, the precious metal has long been considered a good asset to balance out riskier investments in your portfolio and protect against inflation eroding the value of your savings.