Economic indicators: gold
The global economy is still looking very unstable. OK, the Great Recession may have ended, but that doesn’t suddenly make everything hunky dory again. Slow growth, soaring commodity prices, sovereign debt fears - throw in major political unrest in several countries, and financial markets don’t know what to make of it all.
This means more and more investors crying out for a secure home for their money. And for many, gold is the ultimate safe haven. With so much uncertainty around, it’s no wonder that the gold price measured in US dollars has been surging in recent years.
But what makes gold tick? And can its price keep rising?
To answer these questions, we’ve started tracking a few indicators that have correllated closely with gold in the past.
You can read in detail what each indicator suggests for gold using the links below. But to summarise, exchange rate moves in the Japanese yen are great pointers to the next move in the yellow metal’s price. And you can see what the gold/silver price ratio means for global stock markets.
For more details, check the links below.
A warning sign for stock markets
Gold in US dollars vs the dollar/yen exchange rate
What the Japanese yen can tell us about gold demand
Gold compared with long-term interest rates
How falling long-term interest rates are driving gold higher
Gold in sterling compared with UK inflation
How gold can help you hedge against Britain's inflation problem
Gold compared with the US dollar
Why a rising dollar is bad for gold
Gold and commercial v non-commercial traders
What traders can tell you about gold's next move
Gold and the 144-day moving average
What the 144-day moving average tells us about gold's next move