Gold Prices Soar 7.7% in Strongest Weekly Performance Since March 2020

Gold prices have rebounded strongly in recent days, posting their best week since March 2020. The precious metal's value rose by 7.7% over the past seven days, with prices now trading around $4,400 per troy ounce.

This marks a significant shift from the downward trend that had developed over the past several months. Key factors behind the recovery include hopes of progress toward an agreement on shipping through the Strait of Hormuz and increased demand through exchange-traded funds (ETFs), particularly during Asian trading hours.

According to Victor Dima, Treasury Manager at Tavex Romania, 'A 7.7% increase in just one week is clearly a significant move, but the percentage itself is not the most important signal.' He notes that what matters more is the underlying factors driving the recovery, including investment demand through ETFs and stronger activity in Asia.

The strong move follows a difficult period for gold, which fell to around $4,000 per troy ounce due to the war between the United States and Iran. However, with gold now having moved out of its downward trend, the next key area is the 200-day moving average, currently located just below $4,500 per troy ounce.