After Sleeping for 3 Weeks, Gold Starts to Rise Again!
The world gold price (XAU/USD) strengthened on Friday (4/7) and is still on a positive track, although it has not been able to return to its weekly high. What caused it? Market concerns about the worsening US fiscal conditions due to President Donald Trump's large spending bill plan are one of the main factors. In addition, uncertainty about global trade tariffs has also encouraged investors to switch to safe assets such as gold.
Although the US labor data released Thursday showed stronger results than expected, and made the market start to reduce expectations for an interest rate cut by the Fed in July, the price of gold remained stable. The US dollar had strengthened due to the jobs report, but failed to maintain its momentum because fiscal concerns still loom.
Analysts assess, what is the future prospect of gold? With the backdrop of geopolitical tensions and the US fiscal deficit, gold is considered to still have the potential to strengthen. If there are no new negative surprises, this precious metal will most likely record its first weekly increase after three consecutive weeks of decline.
Source:(ayu-newsmaker)