One of the biggest markets for gold is the United States and it can be seen in the XAUUSD index. The relationship between spot gold price and the US dollar has a great history. Today the New York Stock Exchange (NYSE) and Chicago Commodities Trading Center are the two main markets for determining gold prices in US Dollars.

What is XAUUSD?

The XAUUSD price shows how many USD traders need to pay for an ounce of pure gold. Since 1971, the price of gold has been increasing due to the ban on the solid equivalency of one ounce of gold for 41 USD. That happened during Nixon's administration, and ever since, we have seen the spot mini gold index increase.

The XAUUSD index shows investors how much an ounce of gold in the American market costs. The price has to do with gold being readily deliverable to purchasers and investors. That means when you buy an ounce of gold, you need to be ready to store it physically.

In reality, XAU/USD has to do with contracts between buyers and sellers having a premium for the secure storage of the commodity. It is essential for those who want to explore how to trade XAUUSD.

How does XAU USD work?

Traders can negotiate the price of a gold ounce from 10 AM to 4 PM every business day in Eastern Standard Time (New York City Time).

However, some more complex gold transactions in Chicago use Central Time. When the demand for gold becomes more apparent than the supply, the gold price goes up in US dollars. However, when there are lower interest rates in the economy and the growth is apparent, the XAU USD plummets, and that's what traders eager to explore how to invest in XAUUSD should keep in mind.

Gold price today

The XAUUSD price today can be checked on the SimpleFX platform and website. Some traders want to explore the price of a gram of gold, as these smaller samples are vital for branches such as jewelry.

XAU/USD: Gold chart

Traders can check the XAU/USD chart on the SimpleFX platform and above the instrument description. The gold chart can be used to analyze the potential changes during the previous economic events that might affect the price of the asset.

XAUUSD price history

Here are the short historical ranges of the XAUUSD index that included many economic and political turmoil affecting the index price:

2020
As the year had an economic pause in industrial production, the gold price index went up to 1,812 USD to anticipate global recession fears. 2020 was one of the years of exponential growth for XAUUSD investors.

2021
The stabilizing effect of higher interest rates in the US economy moved the spot mini gold in the USD index close to 1,890 USD. That flagged a non-significant change in the index, and investors could not expect more of a return on their investment.

2022
The price has not changed for the third consecutive year and closed close to 1,800 USD in December 2022. The effects of the War in Europe and inflation in the US market made the index stay in its current position, having a subsidy from the FED bank to avoid the rapid devaluation of the US dollar.

Is XAUUSD a good investment?

XAUUSD investing might be a solid solution for individuals and businesses. However, before investing, everyone must do the required research about the commodity.

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