Gold Rises Slightly, US Economic Weakness a Key Driver
Gold prices rose slightly at the start of the week, driven by a weakening US economy, which has boosted investor appetite for safe-haven assets. The precious metal is trading around $4,017 per ounce after trading flat last week. The rise in gold prices came after data showed US consumer sentiment fell to a near-historic low, driven by the impact of the government shutdown and rising prices.
The longest shutdown in US history appears to be coming to an end after a group of moderate Democratic senators agreed to support a deal to partially reopen government agencies. Hopes of an end to the political deadlock temporarily weighed on gold prices, but concerns about an economic slowdown continue to maintain demand for the precious metal.
Despite falling about 8% from its record high above $4,380 per ounce in mid-October, gold prices are still up more than 50% year-to-date. The factors driving this massive rally, from economic and geopolitical uncertainty to massive buying by central banks and retail investors, remain in play.
In Monday morning trading in Asia, the spot gold price rose 0.4% to $4,016.92 per ounce. The Bloomberg Dollar Index edged up 0.1%, while silver, platinum, and palladium also rose. Investors are now awaiting the latest developments on US government policy and subsequent economic data to determine the market's next direction. (asd)
Source: Newsmaker.id
