Gold prices rose and touched a multi-week high in early Friday trading, breaking through the $4,300 level. The precious metal is finding support from a weakening US dollar, which on Thursday fell to a seven-week low. The greenback is under pressure as the outlook for the Federal Reserve turns increasingly dovish, amid signs of a slowing economy, political pressure from the White House, and Chairman Jerome Powell’s acknowledgement, at the end of this week’s meeting, that the US labour market faces significant downside risks. Gold continues to benefit from this dynamic due to the inverted price correlation between the two assets. At the same time, geopolitical instability in Ukraine and the increasingly visible cracks within the Western alliance are adding to gold’s safe-haven appeal. Against this backdrop, the path of least resistance for the precious metal remains to the upside, with traders remaining tuned-in to the public speeches scheduled for this Friday by senior FOMC members.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Forecasts are not guarantees. Rates may change. Political risk is unpredictable. Central bank actions may vary. Platforms’ tools do not guarantee success.