Gold Suddenly Accelerates! Is This a Sign of a Big Storm Coming?
Gold prices (XAU/USD) rose more than 1% and were trading around $3,340 on Tuesday afternoon, maintaining a positive trend since the beginning of the European session. This increase occurred as the US Dollar continued to weaken, touching its lowest level since February 2022. The main cause was the increasing market expectation that the Federal Reserve would cut interest rates in the near future.
This condition encouraged investors to turn to gold as a safe asset that does not provide interest, but its value tends to be stable when interest rates fall. Additional uncertainty came from Donald Trump's tariff policy ahead of the July 9 deadline, which increased interest in gold as a hedge against geopolitical and economic risks.
Although the global stock market is still showing quite positive performance, this does not seem to reduce investor appetite for gold. Usually, a "risk-on" market atmosphere depresses gold prices, but currently, the precious metal is still rising. This signals that market sentiment is still filled with caution.
However, investors tend to wait for further clarity before taking large positions. Market focus is on Fed Chairman Jerome Powell's speech tonight, as well as important data such as the US employment report (Nonfarm Payrolls) to be released on Thursday. Both of these things could be triggers for the next direction of gold prices.
Source: (ayu-newsmaker)
