Gold prices climbed to a one-month high on Friday, fueled by anxieties over potential trade wars and bets on further Federal Reserve rate cuts. The rally is driven by a combination of geopolitical uncertainty, a weakening US Dollar, and a preference for safe-haven assets.
Gold prices surged on Friday, reclaiming a one-month-old uptrend and reaching highs not seen since October 31st. This rally is attributed to several key factors: global trade war anxieties, bets on further Federal Reserve rate cuts, and a generally risk-averse market environment. Worries about US President Donald Trump's trade policies reignited, with investors increasingly concerned about the potential for escalated trade conflicts and heightened market volatility.
This fear-driven sentiment propelled safe-haven flows towards gold, pushing prices higher. Meanwhile, the expectation of additional interest rate cuts by the Federal Reserve weighed on the US Dollar (USD), further benefiting the non-yielding precious metal. A slight easing in risk sentiment emerged after President Trump's comments suggesting a preference for avoiding tariffs on China. However, this positive development did little to dampen the bullish momentum surrounding gold prices. Although slightly overbought conditions on short-term charts could potentially hinder further upside, gold remains poised for substantial weekly gains and is now approaching its all-time peak of around $2,790. Key support levels lie near $2,760 and $2,735, while a break below these levels could signal a shift in market sentiment.From a technical standpoint, recent dip-buying and the subsequent upward move validate a bullish breakout past the $2,720-2,725 supply zone. However, the Relative Strength Index (RSI) on the daily chart is nearing overbought territory, suggesting a potential for near-term consolidation or a modest pullback before further gains. This could indicate that the price may encounter resistance near the all-time peak, around $2,790
GOLD PRECIOUS METALS TRADE WARS FEDERAL RESERVE INTEREST RATES US DOLLAR RISK SENTIMENT
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold Stocks: A Potential Outperformance Opportunity in 2024This article discusses the potential for gold and gold stocks to outperform in 2024 amidst market uncertainty. It analyzes the performance of GLD and GDX, highlighting the underperformance of gold stocks compared to gold. The article suggests that a 'catch up' trade could be in play, with gold stocks closing the gap with stronger gold prices. It also identifies Kinross Gold Corp. (KGC) as a top performer within the gold space.
Read more »
Gold Prices Surge to Best Performance Since 2010Gold prices continue their upward trajectory, reaching their strongest annual performance since 2010, driven by US monetary easing, geopolitical tensions, and increased central bank demand. However, the Federal Reserve's potential hawkish shift may pose challenges for the non-yielding precious metal.
Read more »
Gold Prices Surge to $2,650 as Investors Brace for Trump's PoliciesGold prices climbed near $2,650 as investors anticipated heightened global uncertainty under President Trump's administration. Trump's expected policies, including higher import tariffs and lower taxes, are fueling investor concerns about a potential trade war and rising inflation. These factors are driving demand for gold as a safe-haven asset.
Read more »
Commodity Prices Expected to Decline in 2025, Gold and Gas to SurgeIndustry experts predict a general decline in global commodity prices in 2025 due to economic slowdown and a strong US dollar. However, gold and gas prices are anticipated to rise. China's economic stimulus measures will be closely watched for their impact on global commodity demand.
Read more »
Gold Prices Surge Amidst Global UncertaintyGold prices climbed for the third consecutive day, driven by safe-haven demand fueled by concerns over potential US tariffs and a surge in UK gilt yields. While the Federal Reserve delivered mixed signals on rate hikes, market attention is now focused on upcoming US economic indicators.
Read more »
Gold Prices Surge to Multi-Week High Ahead of Key Data ReleasesGold reaches fresh highs above $2,680 as investors anticipate China and US inflation data. Technical indicators point to a bullish outlook.
Read more »