Gold Nears Another Record
Gold is once again being sought after as a safe haven amid trade and geopolitical tensions. After briefly dropping to the $4,279–$4,280 range in Asia, prices have rebounded and are now nearing $4,350/oz, approaching the record high set on Friday.
Key support comes from bets on two more Fed rate cuts this year and a prolonged US government shutdown. Expectations of looser policy pushed the US dollar to its lowest in more than a week, strengthening the price of non-yielding gold.
Technically, gold is overbought on short-term charts, but there are no signs of trend exhaustion yet. This means the path of least resistance is currently upwards, as long as there is no sharp reversal in the dollar and US bond yields.
Against a supportive fundamental backdrop—US–China tensions, the US shutdown, and the prospect of a Fed rate cut—gold remains on track for nine consecutive weeks of gains. As long as the "safety" sentiment persists and the dollar is weak, the opportunity for a retest of the record remains open.
Source: Newsmaker.id
