Gold is a precious metal that is widely traded in financial markets. It has been used as a form of currency and a store of value for thousands of years, and is still considered a safe-haven asset by many investors today. Gold’s price is often seen as an indicator of market sentiment, particularly during times of economic uncertainty or geopolitical tension.
Gold’s relationship to other financial assets can vary depending on market conditions. In general, gold tends to have an inverse relationship with the US dollar – when the dollar weakens, gold prices tend to rise, and vice versa. Gold is also seen as a hedge against inflation, as its value tends to rise when the cost of living increases.
Gold is often traded through futures contracts, exchange-traded funds (ETFs), and physical bullion. Investors can buy and sell gold in a variety of forms, including coins, bars, and jewelry.