Gold acts as a currency stabiliser and as a store of value by central banks around the world. It is also used as a guarantee and leverage tool. Investors use gold and other precious metals to hedge against inflation, deflation, or devaluation. However, the price of gold can be affected by monetary policy, geopolitics, natural disasters, and the U.S. dollar. Geopolitical risk is a key driver of gold, and in times of uncertainty, gold prices have a tendency to rise. Historically the gold price has been impacted by sensitive political issues, referendums, or civil wars.
Gold is one of the most widely followed commodities in the financial market and is mined on every continent except Antarctica. The commodity was first traded on the stock market in 1974 on the COMEX exchange. You can trade Gold through CFDs, which track the price of gold as a ‘spot’.
Follow the development of the price of GOLD by adding it to your eToro virtual portfolio.