Gold futures ended Thursday’s trading session higher, recovering from earlier losses as the US dollar weakened. The US Dollar Index (DXY) decreased by 0.09%, and gold prices received support from this development. The strength of the US dollar had been putting pressure on gold earlier in the day, following the release of positive US Producer Price Index and Consumer Price Index readings.
Christopher Louney, an analyst at RBC Capital Markets, commented on the situation, saying that gold prices will continue to be affected by economic indicators such as employment, inflation, and growth. He added that investors are looking to these indicators to gain insight into the Federal Reserve’s policy decisions and the possibility of a recession.
April gold delivery (GCJ23) rose by 0.47% to settle at $1,851.80 per ounce on Comex. The metal gained $6.50 per ounce, and the closing price was its highest for the day.
The precious metal has been on a bull run since the beginning of 2020, with prices rising by more than 25%. This is due to a combination of factors, including a weakening US dollar, decreasing interest rates, and increasing demand for safe-haven assets.
Low interest rates have been a major factor in gold’s price surge, as they make the metal more attractive to investors. The US Federal Reserve has been cutting interest rates to stimulate economic growth, and this has been a major driver of gold prices.
The weakening US dollar has also been a major factor in gold’s price rise. A weaker US dollar makes gold more affordable to foreign buyers, and this has been pushing up gold prices.
Increasing demand for safe-haven assets has also been driving up gold prices. Investors have been turning to gold as a safe-haven asset in times of economic uncertainty, and this has been pushing up prices.
Gold has also been benefiting from geopolitical tensions, as investors have been turning to the metal as a safe-haven asset in times of geopolitical uncertainty. Recent tensions between the US and China, as well as between the US and Iran, have been driving up gold prices.
Overall, gold prices have been rising due to a combination of factors, including a weakening US dollar, decreasing interest rates, increasing demand for safe-haven assets, and geopolitical tensions. The metal has been on a bull run since the beginning of 2020, and prices are expected to remain high in the near future.
