Adversitement
Gold Hits Record High at $2330 Amid Middle East Tensions and Fed Rate-Cut Hints
Published On : 2024-04-07T12:46:46+0530 [ IST ] |
Author : Mayur_Tembhare
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Gold prices surged to a record high of $2330 amidst escalating tensions in the Middle East and optimistic signals for rate cuts by the Federal Reserve. The precious metal rallied for the third consecutive week, posting substantial gains despite surging yields and a largely stable US Dollar.
The surge in gold prices was attributed to a combination of factors, including escalating geopolitical tensions, positive US economic data, and hints of potential rate cuts by the Fed Chair. Geopolitical uncertainties, particularly regarding the possibility of a direct conflict between Israel and Iran, drove investor sentiment towards safe-haven assets like gold.
Despite surging yields and a steady US Dollar, gold continued its upward trajectory, closing with a solid gain of 1.76% at $2330 on Friday. The metal posted a remarkable gain of nearly 4.50% for the week, reaching a fresh record high above $2330.
The surge in gold prices was supported by positive US economic data, including encouraging non-farm payroll figures for March. Job gains in sectors such as healthcare, construction, leisure, and hospitality contributed to the optimistic outlook for the US economy.
Looking ahead, investors are closely monitoring key macroeconomic releases, including US CPI data and FOMC meeting minutes. The outcome of these reports will play a crucial role in shaping market sentiment and determining the direction of gold prices.
Resistance levels for gold are identified at $2360/$2400, while support levels are at $2300/$2250/$2200. Despite the recent rally, a short-term correction in gold prices would not be surprising given the heightened geopolitical tensions and potential market uncertainties. Investors remain cautious amid geopolitical risks and await further developments in the global economy.
Source : Economic Times
Tags : Gold , Record High , Middle East tensions , market sentiment , US economic data , Fed rate cuts , geopolitical tensions ,
Summary : Gold closed at a record high of $2330 amidst escalating Middle East tensions, positive US economic data, and hints of potential rate cuts by the Fed Chair. Despite surging yields and steady US Dollar, gold rallied for the third straight week, posting significant gains driven by geopolitical uncertainties. The upcoming US CPI data and FOMC minutes will be crucial for market direction, with resistance at $2360/$2400 and support at $2300/$2250/$2200.
Adversitement