Gold Hits New Record!
Gold prices hit a new record high of $4,068 per ounce on Monday (October 13th), driven by increased demand for safe-haven assets amid global concerns. Trade tensions between the United States and China have escalated following new tariff threats from US President Donald Trump, while expectations that the Federal Reserve (The Fed) will further cut interest rates have strengthened gold's appeal as a hedge.
The weakening US dollar due to the interest rate cut has also provided additional support for the price of this precious metal. Market participants now expect the Fed to cut interest rates two more times before the end of the year to cushion the impact of the economic slowdown. This has depressed bond yields and increased investor interest in non-interest-bearing gold.
Although Trump initially hesitated to announce 100% tariffs on China, the market remains wary of the potential for further escalation. Tensions in geopolitical sentiment, coupled with the partial US government shutdown and global political instability, continue to be key drivers of the gold price rally.
Analysts expect the bullish momentum to remain strong, although the market is showing overbought conditions. As long as the global crisis persists and expectations of monetary policy easing remain high, gold will continue its upward trend toward higher levels in the near term. (asd)
Source: Newsmaker.id
