Gold Prices Soar to New High Amid Weakening Dollar and Economic Uncertainty
World gold prices have been on an upward trend, reaching a new high of $4,623 per ounce. This surge in price is attributed to the weakening US dollar and expectations that the Federal Reserve (Fed) will maintain its monetary policy rather than raise interest rates.
The current market situation shows mixed signals for the US economy. While some indicators such as inflation, retail sales, and consumer sentiment suggest a slowdown due to high interest rates, others like the service sector PMI indicate improvement in business operations.
Gold prices have been positively impacted by geopolitical risks, including instability in the Strait of Hormuz that has increased concerns about global energy supplies. This has led to higher oil prices and inflation expectations, boosting demand for gold as a safe-haven asset.
The precious metal's price increase is expected to continue, with technical analysts targeting $4,671 per ounce next. However, if gold prices fall below the support zone of $4,447 per ounce, adjustment pressure may increase.