Usually, psychological factors, which mainly precede economic data releases, or are a result of those data releases cause volatility in markets and gold prices. This includes higher or lower unemployment rate, inflation rate, change in interest rates, especially in the USA [set by the Federal Reserve (FedRes)], as well as fears of the spread of pandemics across large and sensitive geographical areas, which can freeze or hamper international trade as was the case during the Covid-19 pandemic.

The second factor impacting gold prices is the fluctuation of yields on USA Treasury bills (T-bills). Whenever those yields rise, they become more attractive to investors who prefer to ge...