The price moves due to numerous influences, such as: Central bank activity Monetary policy Interest rates Currency market activity Inflation/deflation Geopolitics Risk appetite or aversion Jewelry demand Investment demand Currency markets can have a dramatic effect on the price. Gold is typically denominated in U.S. Dollars, a weaker dollar can potentially make it relatively less expensive for foreign buyers. A stronger dollar can potentially make it relatively more expensive for foreign buyers.  This currency relationship can often be seen in the price. On days when the dollar index is sharply lower, gold may be moving higher. On days when the dollar index is stronger, it may be losing ground. Although, there are environments where both the price of gold and the U.S. dollar rise or fall together. Interest rates have an influence on gold prices. It pays no dividends and does not pay interest, the price may potentially remain subdued during periods of high or rising interest rates. Should interest rates drop, gold may benefit. It could also move higher even with high-interest rates, and it could move lower even during periods of ultra-low rates. Monetary policy can affect the price. If a government is actively engaged in quantitative easing or other stimulus programs, those programs may potentially weaken the U.S. dollar which potentially makes it more attractive.