Spot gold prices surged past the $4,470 per ounce mark, marking a 0.35% gain during the session and reaching a new peak for the current cycle. This rally is fueled by a confluence of macroeconomic and market-driven factors.
Mounting Safe-Haven Demand
Elevated geopolitical tensions and hotter-than-expected inflation data from major economies have redirected investor flows toward safe-haven assets like gold. Market sentiment suggests that gold’s role as a hedge against uncertainty is gaining renewed traction.
Minimal Pressure from Dollar Movements
Despite minor fluctuations in the U.S. dollar index, the impact on gold has been limited. Analysts note that persistently low real interest rates continue to enhance gold’s appeal as a non-yielding asset.
- Gold ETF holdings have risen for three consecutive days
- Physical demand in Asian markets shows signs of recovery
- Expectations grow for the Fed to maintain a dovish stance
Technically, gold has cleared a major resistance level. If support holds at $4,450, the next psychological target at $4,500 could come into play. Traders are eyeing the upcoming U.S. nonfarm payrolls report as a potential catalyst for further volatility.