Gold Regains Pressure, Dollar Weakens
Gold has set a new record, breaking through its all-time high above $5,266 per ounce. This rally continued as the US dollar weakened, while investors sought safe havens amidst increasingly uncertain markets.
On Wednesday, gold prices rose around 1.3%, continuing the previous day's significant surge. The previous increase was also considered significant, being the largest in recent months.
One of the triggers came from comments by US President Donald Trump. He stated that he was not concerned about the weakening dollar, even though the currency had fallen to its weakest level in nearly four years. This statement emboldened the market to push the dollar even higher.
At the same time, geopolitical tensions and policy concerns further strengthened the appetite for safe assets. As a result, gold was increasingly flooded with investment demand and maintained its aggressive uptrend.
The market also once again became abuzz with discussions about "flight from bonds and currencies." The most prominent example was the massive sell-off in the Japanese bond market. Concerns about large fiscal spending make investors more sensitive to risk, which typically benefits gold.
Furthermore, speculation about possible US action to help prop up the yen has also put pressure on the dollar. When the dollar weakens, gold feels cheaper to global buyers—and that adds to the upward pressure.
5 key points
Gold hit a new record above $5,266/oz, continuing its extreme rally.
The weakening dollar is the main fuel because it makes gold more attractive to global buyers.
Trump's "indifferent" comments about the dollar reinforce the market perception: the USD can weaken.
Investors are becoming more defensive: they are moving out of bonds/currencies and into real assets like gold.
The sell-off in Japanese bonds and speculation about yen support are adding pressure on the dollar, strengthening gold. (az)
Source: Newsmaker.id
