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Educational content, not investment advice.

Souq Dailyسوق ديليSouq Daily

Lesson 7 of 103:594 Sources

Gold: what really moves it

Recorded. Publishing soon

Presented by NourIn Arabic, with captions. Other languages are coming.

Educational content, not investment advice. Nour explains how markets work. She never tells you what to buy or sell.

The World Gold Council groups gold's drivers into economic expansion, risk and uncertainty, opportunity cost (interest rates and the dollar) and momentum/trends. No single factor explains it.

  • Dollar: WGC research found a consistently negative relationship (weekly data 1971–2018), but the dollar doesn't explain everything.
  • Real yields (rates minus inflation) raise the cost of holding a non-yielding asset – yet higher real rates have not always meant lower gold.
  • Fear: WGC cited Middle East tensions among 2024's demand factors.
  • Central banks bought over 1,000t a year in 2022–2024 and about 863t in 2025, still well above the 2010–2021 average of 473t.
  • Gold is volatile – not a 'can't-lose' asset.

Quick check

Three questions. Pick an answer to see why.

0/3

  1. 1.Which is NOT one of the WGC's gold driver families?

  2. 2.A bond yields 4% and inflation is 3%. What is the real yield?

  3. 3.How much gold did central banks buy in 2025, per the WGC?

Sources

Every fact in this lesson is backed by the sources below.

  1. 1.World Gold Council – Gold Return Attribution Model (gold drivers)Gold drivers: economic expansion, risk & uncertainty, opportunity cost (FX and interest rates), momentum & trends
  2. 2.World Gold Council – Investment update: gold tracks dollar, rates take a back seat (2018)Consistently negative gold–US dollar correlation (weekly returns, Jan 1971–Mar 2018); the dollar won't explain gold entirely; higher real rates have not always meant negative gold returns
  3. 3.World Gold Council – Global gold demand hits new high as prices soar in 2024Central bank purchases exceeded 1,000t for the third year in a row in 2024; Middle East tensions cited
  4. 4.World Gold Council – Gold Demand Trends Full Year 2025: Central banksCentral bank net purchases of 863t in 2025, below the 1,000t+ of the prior three years but well above the 2010–2021 average of 473t

Educational content, not investment advice. Risk warning: trading forex, CFDs, gold and crypto carries a high level of risk and may not be suitable for everyone. You can lose more than you put in. Souq Daily is an education platform. Nothing here is investment advice, a recommendation or an offer, and past performance does not predict future results.