Gold has moved hundreds of dollars in a single week more than once. Understanding %2Awhy%2A gold moves is what separates traders who react from traders who anticipate. Here are the forces that actually drive the XAUUSD chart.%0A%0A%23%23 1. Interest rates %28the biggest driver%29%0A%0AGold pays no interest. When banks offer high rates on cash and bonds%2C holding gold costs you the interest you gave up %97 so demand falls and the price drops. When rates fall%2C that cost disappears and gold usually rises.%0A%0AThis is why traders watch central bank decisions so closely. A single sentence from the US Federal Reserve about future rate cuts can move gold 300%2B pips within minutes.%0A%0A%23%23 2. The US dollar%0A%0AGold is priced in dollars%2C so the two usually move in opposite directions. A stronger dollar makes gold more expensive for buyers using other currencies%2C which softens demand. A weaker dollar usually lifts gold.%0A%0AWatch the Dollar Index %28DXY%29%3A when it spikes%2C gold often dips at the same moment.%0A%0A%23%23 3. Inflation%0A%0AGold has a centuries-old reputation as a store of value. When inflation rises and paper money buys less%2C investors historically move to gold. Inflation reports %28like the US CPI release%29 are among the most violent days of the month for XAUUSD.%0A%0A%23%23 4. Fear and uncertainty%0A%0AGold is the classic %22safe haven.%22 Wars%2C banking failures%2C political crises and market crashes all tend to push money into gold. These moves can be sudden and enormous %97 and they are impossible to predict from a chart alone.%0A%0A%23%23 5. Central bank buying%0A%0ACentral banks hold gold as reserves%2C and in recent years many have been steady net buyers. This is slow-moving demand%2C but it puts a floor under the long-term price.%0A%0A%23%23 What this means for your trading%0A%0AYou do not need to forecast any of this to trade gold well %97 but you do need to respect it%3A%0A%0A- %2A%2AKnow the calendar.%2A%2A Check for major US data %28inflation%2C jobs%2C Fed decisions%29 before entering. Spreads widen and stops get skipped during releases.%0A- %2A%2AExpect violence.%2A%2A Gold routinely moves 200-400 pips on news days. Size your positions for that reality%2C never risking more than 1-2%25 per trade.%0A- %2A%2ADo not fight a macro move.%2A%2A When gold rockets on a geopolitical headline%2C that trend can run for days.%0A%0AOur signals already factor the session and news calendar into every setup %97 and every one of them%2C win or lose%2C is published on our [results page]%28%2Fresults%29.