Gold spreads: what does your broker charge on XAU/USD?
Gold spreads vary by broker more than most instruments, and the differences matter because gold's moves are measured in dollars. Real numbers help.
Share:
- the broker and account type
- the XAU/USD spread you see normally and around news
- whether commission applies
The gold guide covers the instrument's behaviour.
Background: What moves the gold price? Real rates, the dollar and safe-haven demand
Gold pays no interest and has no earnings, so its price responds to a different set of forces than currencies or shares. The main drivers behind XAU/USD.
Why does gold fall when interest rates rise?
Gold pays no interest. When real yields on cash and bonds rise, holding gold means giving up more income, so demand tends to fall.
Is gold a safe-haven asset?
It is widely used as one. Investors tend to buy gold during geopolitical or financial stress, although it can still fall sharply, especially when interest rates rise.
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