Gold Nears $4,000, What's the Secret Behind It?
Gold continues to surge and is close to hitting $4,000 per ounce as the ongoing US government shutdown delays the release of crucial payroll data, further clouding the economic outlook. This uncertainty has led market participants to rely on private sector reports for insights into economic conditions, while central banks struggle to make monetary policy decisions.
Gold's nearly 50% year-to-date rise is driven by economic turmoil and rising geopolitical tensions, as well as the Federal Reserve's interest rate cut cycle, which benefits the precious metal as it does not pay interest. Furthermore, gold purchases by central banks seeking to reduce reliance on the dollar are also strengthening prices.
According to analyst Ahmad Assiri of Pepperstone Group, the trend of interest rate cuts and a weakening labor market will continue to support gold prices, although there is the potential for a healthy temporary correction in this long-term rally. Gold remains attractive as a safe-haven asset amid the global economic outlook.
In this morning's trading, gold prices rose 0.5% to $3,905.54 per ounce, after recording their seventh consecutive weekly gain. Other precious metals such as silver, platinum, and palladium also showed gains, while the US dollar strengthened slightly. (asd)
Source: Newsmaker.id
