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Gold Near Record Highs Amid Middle East Tensions and Weak Dollar

Gold prices remained elevated after reaching a record high. This move higher can be traced to two major factors. First, the dollar weakened, making dollar-denominated gold cheaper for holders of other currencies. Second, geopolitical concerns are growing. Israel’s airstrike on Beirut, which resulted in the death of a Hezbollah commander, has heightened fears of a broader conflict. These factors are boosting demand for gold as a safe-haven asset. U.S. gold futures edged higher. The uptick in futures mirrors the mood in the spot market, with traders hedging against ongoing risks. If tensions in the Middle East escalate further, we expect bullion prices to see sustained support. However, the likelihood of further upward moves may depend on the evolving geopolitical landscape and key interest rate decisions. Read more to find out how will gold trend.

how will gold trend

Disclaimer:

As traders await comments from Fed Governor Adriana Kugler, attention will likely stay on gold’s reaction to rate signals. With inflation still “uncomfortably above” target, any Fed action could influence the appeal of safe-haven assets like gold. Traders should maintain risk management in making every single trade decision.

Publication date:

2024-09-28 20:27:06 (GMT)

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