Gold experienced a surge, reaching approximately $3,980 per ounce and poised for its eighth consecutive weekly gain, driven by economic uncertainties and anticipated US rate cuts. Despite nearing a record high, it faced a slight retreat due to a stronger US dollar and profit-taking after ceasefire news, further influenced by concerns over persistent inflation and the ongoing US government shutdown.
- Gold rose to around $3,980 per ounce.
- It is heading for its eighth consecutive weekly gain.
- Economic uncertainties and expectations of US rate cuts are supporting the price.
- New York Fed President John Williams is open to another rate cut.
- FOMC minutes showed policymakers saw growing risks to the labor market.
- Policymakers remained cautious about persistent inflation.
- The US government shutdown has delayed key data releases.
- Gold retreated from its fresh $4,000 milestone.
- The US dollar strengthened and investors took profits following news of a ceasefire agreement between Israel and Hamas.
The market dynamics point toward a complex interplay of factors influencing the asset’s value. On one hand, economic anxieties and the potential for lower interest rates are boosting its appeal as a safe haven. Conversely, a stronger dollar and improvements in geopolitical stability could dampen its upward momentum. Concerns about inflation and labor market conditions further complicate the outlook, suggesting a period of potential volatility and price fluctuations for the asset.