$XAU reflects the purest form of gold exposure, anchored in physical production rather than financial engineering. Supply growth is slow and structurally constrained, shaped by long development cycles, rising mining costs, and limited high-grade discoveries. That natural friction keeps gold scarce by design. On the demand side, XAU responds less to hype and more to macro pressure real yields, currency debasement, and systemic risk. Price action often looks quiet until it isn’t, with sharp repricing during stress events. $XAU isn’t built for speed or yield, but for durability, functioning as long-term monetary insurance.