Safe Haven Demand Boosts Gold Prices
Newsmaker.id - Gold prices strengthened in Asian trading on Tuesday (July 14th), returning above the psychological level of US$4,000 per troy ounce. Gold traded around US$4,011 after previously coming under pressure due to the strengthening US dollar and rising expectations of high interest rates.
Gold's rise was supported by buying at low prices following sharp declines in recent sessions. Investors began returning to the precious metals market, finding the area below US$4,000 attractive, especially amid global economic and geopolitical uncertainty.
Tensions between the United States and Iran in the Strait of Hormuz region also supported demand for gold as a safe haven asset. The threat of disruption to global energy shipping routes has pushed up oil prices and raised concerns that inflationary pressures could flare again.
Despite strengthening, gold's movement remains potentially volatile ahead of the release of US consumer inflation data. Higher-than-expected CPI data could strengthen the dollar and further pressure gold, while lower inflation could open up room for upside towards the next resistance area.
Market Impact :
Gold: The return of prices above US$4,000 indicates recovering demand. As long as it remains above this level, the opportunity to move towards US$4,020–US$4,040 remains open.
US Dollar: A weakening dollar could strengthen gold's upside. Conversely, a strengthening dollar could potentially dampen the rebound momentum.
Hormuz Conflict: An escalation in the conflict could increase demand for safe havens and be a positive catalyst for gold.
US CPI Data: Low inflation tends to support gold, while high inflation can increase interest rate expectations and further depress prices. (CP)
