Geopolitical tensions and anxiety over key data on the US economy to be released this week are driving a rotation towards safe assets such as gold.
Gold could reach a new all-time high, boosted by possible spikes in volatility in the coming days.
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He Gold is trading at around US$2,460 this Tuesday. In just over three full sessions, the price per ounce climbed by approximately 3.3%, now standing just 1.6% away from the psychological level of $2,500.
This bullish momentum is driven by rising geopolitical tensions. Israeli airstrikes in Khan Yunis on Monday resulted in at least 18 deaths and several injuries. Last week, Ukrainian forces crossed the Russian border and are holding positions in the Kursk region.
Gold: what the market is analyzing
Gold could reach a new all-time high, boosted by possible spikes in volatility in the coming days.
Bullish sentiment may also be related to market participants positioning ahead of key US economic news: such as the Consumer Price Index report (CPI) to be released tomorrow, and on Thursday, data on Core Retail Sales and unemployment news will be released.
According to Dow Jones Newswires, Deven Gaglani, a research analyst at Axis Securities, notes that “a break above the $2,483 high and a weekly close above this level would be a bullish signal, which could take prices to $2,550.” Gaglani also suggests that news of a decline in inflation could contribute to an increase in gold prices.
Source: Ambito
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