Why Does the Gold Price Rise? The 5 Most Important Factors

The gold price moves daily — but why? Understanding these drivers is essential for sound investment decisions.

1. Real Interest Rates

Gold pays no interest. When real rates are high, gold loses attractiveness. When real rates fall or turn negative, gold rises. The 10-year US TIPS yield is the most important single indicator for gold.

2. US Dollar

Gold is traded globally in USD. A weak dollar makes gold cheaper for international buyers — increasing demand and driving the price. The USD/gold correlation is typically negative: -0.7 to -0.9 on an annual basis.

3. Central Bank Demand

Since 2022, central banks worldwide have been buying gold in record quantities. This structural demand is a long-term price driver.

4. Inflation & Geopolitics

Gold is a classic inflation hedge and safe-haven asset. In times of crisis, investors flee to gold. Track all these factors daily with the Macro Monitor on GoldKurs.ch.