Why the gold price is volatile?

The gold price is a function of many factors, including central bank policy, global economic conditions, and geopolitical events. In this blog post, we'll explore the reasons behind the gold price's volatility, and why it's important for new investors to understand.

The first reason behind the gold price volatility is central bank policy. Central banks around the world have been engaged in a race to the bottom on interest rates, and this has had an impact on the gold price. When interest rates are low, gold becomes more attractive to investors because it provides a higher yield than other assets such as bonds. This, in turn, drives up the price of gold. The second reason behind the gold price's volatility is global economic conditions. Gold is seen as a safe haven asset, and so when economic conditions are uncertain, the price of gold tends to go up. This was the case during the global financial crisis of 2008 when the gold price spiked as investors fled to safety. The third reason behind the gold price's volatility is geopolitical events. Gold is often seen as a hedge against geopolitical risk, and so events such as the Brexit vote or the election of Donald Trump can cause the gold price to move higher. Investors need to be aware of these factors if they want to understand why the gold price is volatile. By understanding the reasons behind the gold price's volatility, investors can be better prepared for the ups and downs of the gold market.