Gold Hits New Record, Targeting $4,200
Gold extended its rally and set a new record in the Asian session on Wednesday (October 15th), with the market now targeting a breakout of the psychological $4,200/oz level. The rise was driven by a combination of expectations of a Fed interest rate cut, a weakening US dollar, and hedging flows amid global anxiety.
Risk factors are intensifying: the Russia-Ukraine war has not subsided, US-China trade tensions are heating up again, and the US government shutdown is protracted. This sentiment has investors seeking safe haven assets, while increasingly dovish signals from the Fed—including talk of ending balance sheet tightening within a few months—are adding to the rally.
On the currency side, the USD retreated from last week's peak. US bond yields weakened as the likelihood of two more interest rate cuts by year-end increases. For non-yielding assets like gold, falling yields and the dollar mean lower opportunity costs, so demand remains strong.
Although short-term indicators point to overbought conditions, buying interest has not subsided. As long as the dollar remains fragile and the risk-off narrative persists, gold's uptrend is likely to remain intact. The key level being monitored by market participants is $4,200, with the next catalysts coming from US data, comments from Fed officials, and any new developments on the geopolitical and trade fronts. (asd)
Source: Newsmaker.id
