Gold Surge Highlights Major Uncertainty in the US
Global gold prices started the week with a sharp turnaround, hitting a new record high near US$4,600 per ounce. This increase occurred as investors grew concerned about global economic conditions, particularly after serious issues emerged regarding the independence of the Federal Reserve (Fed). As a result, gold was once again sought after as a safe-haven asset.
Market sentiment was shaken after news emerged of a criminal investigation into Fed Chairman Jerome Powell. This political pressure on the US central bank weakened confidence in monetary policy and put pressure on the US dollar. This situation benefited gold, as when the dollar weakens, gold prices typically rise.
Furthermore, global geopolitical tensions also boosted gold prices. The flood of information on Iran, the Greenland issue, and developments in Venezuela have made investors increasingly cautious. Looking ahead, the market will await US inflation data (CPI) and other important economic releases this week, which could again determine the direction of gold's movement. (alg)
Source: Newsmaker.id