Gold Breaks Record Amid Global Economic Uncertainty
Gold (XAU/USD) continued its historic rally on Monday, finally breaking through the psychological $5,000 mark. The main driver came from rising geopolitical risks and economic uncertainty, which have led investors to return to safe havens. At the time of writing, gold was trading around $5,080, slightly below the new intraday record of $5,111 set earlier.
Concerns about the direction of the US economy fueled the rally. US President Donald Trump's trade rhetoric, tariff threats, and issues concerning the Fed's independence have made the market view US policy as increasingly unpredictable. At the same time, the looming risk of a government shutdown has once again become a factor in investors' calculations.
This combination of factors has kept the US dollar under pressure. When the USD weakens, gold usually benefits from a "backward trend" as it serves as an alternative hedge against macroeconomic instability and is also cheaper for buyers outside the US.
Demand is not just a factor; sentiment is also key to the momentum. Institutional interest and strong investment flows have helped keep the rally going, confirming gold's role as a "store of value" during times of market uncertainty.
In terms of performance, gold has risen around 18% this month, following last year's 64% surge. This pace demonstrates the strength of safe-haven flows and the psychological impact of record-breaking performance.
Next, market focus will be on the Fed's interest rate decision and Chairman Jerome Powell's press conference on Wednesday. On the data front, market participants will be watching the Consumer Confidence Index on Tuesday, followed by the PPI report on Friday—two releases that could influence interest rate expectations and dollar movements, ultimately determining the direction of gold's next rally. (alg)
Source: Newsmaker.id
