Gold prices jumped up to a one-week high in Wednesday’s Asian trading session. This increase is due to increasing geopolitical volatility, as well as an extremely rosy domestic interpretation of US-China trade relations. As investors look for shelter in stormy markets, gold remains a go-to safe haven asset.
Meanwhile, the price of gold remains well positioned to make a more concerted run above the $3,300 level. Analysts argue that this line is key for gold speculators, with acceptance above this line likely to spur new money entering the space. The recent rises in gold prices have persisted, showing an increasing power and resolve against the storm of economic woes.
Geopolitical tensions have historically favored the gold market, and today’s scenario is no different. Continuous volatility in big markets, especially Eastern Europe, has caused investors to leap into gold as a safe haven against imminent market corrections. US-China trade negotiations optimism, on the other hand, hit gold prices negatively. This upbeat mood goes a long way in imparting an all-around decidedly hopeful risk tone to the marketplace.
The US dollar weakness – always a major factor in strengthening gold prices. This is because a weaker USD prices gold more attractively for foreign buyers. This makes it even more valuable as a scarce, portable tradeable asset in an increasingly volatile global currency environment.
“Gold price looks to build on its recent strength beyond $3,300 mark” – www.fxstreet.com
Investors should keep a keen eye on these developments as they continue to adapt and overcome the new labyrinth of America’s unprecedented economic environment. Geopolitical developments, trade tensions and dollar weakness are poised to push gold prices higher. Stay tuned, as we’ll be sharing more about their impact in the weeks to come.