Gold Continues to Rise Despite USD Cooling Off
Gold prices continued their upward trend today, reaching around $2347 USD per ounce, with a 0.261% growth for the day, even as the USD index showed signs of cooling off.
However, after several consecutive sessions of gains, gold prices are facing profit-taking pressure. Nevertheless, the precious metal is believed to still receive significant support due to three main reasons driving its record-breaking surge:
Firstly, political turmoil is driving investors towards gold. Conflicts in Ukraine and Gaza persist, with the risk of escalation to other nations lingering in the market. Investors and governments alike are wary of the consequences of these conflicts, and gold is seen as one of the most effective hedge assets against such concerns.
Secondly, central banks continue to buy gold. Data from the World Gold Council shows that global central bank gold reserves increased by 19 tons in February.
Thirdly, gold is considered a hedge against inflation. Gold often sees a resurgence when inflation tends to rise, thereby preserving the value of money.
In terms of news, this week sees relatively few economic data releases. The highlights include the US Consumer Price Index (CPI) report for March, expected on Wednesday (April 10), followed by the Producer Price Index (PPI) and weekly initial jobless claims data from the US on Thursday (April 11).
However, after several consecutive sessions of gains, gold prices are facing profit-taking pressure. Nevertheless, the precious metal is believed to still receive significant support due to three main reasons driving its record-breaking surge:
Firstly, political turmoil is driving investors towards gold. Conflicts in Ukraine and Gaza persist, with the risk of escalation to other nations lingering in the market. Investors and governments alike are wary of the consequences of these conflicts, and gold is seen as one of the most effective hedge assets against such concerns.
Secondly, central banks continue to buy gold. Data from the World Gold Council shows that global central bank gold reserves increased by 19 tons in February.
Thirdly, gold is considered a hedge against inflation. Gold often sees a resurgence when inflation tends to rise, thereby preserving the value of money.
In terms of news, this week sees relatively few economic data releases. The highlights include the US Consumer Price Index (CPI) report for March, expected on Wednesday (April 10), followed by the Producer Price Index (PPI) and weekly initial jobless claims data from the US on Thursday (April 11).
Comment:
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Comment:
Gold price is on target
