Breaking: Gold rallies further beyond $4,400; highest since early June
Gold (XAU/USD) scales higher for the third consecutive day – also marking the fifth day of a positive move in the previous six – and climbs to its highest level since June 5, further beyond the $4,400 mark during the Asian session on Tuesday.
Gold prices have surged to their highest level since early June, surpassing $4,400 during the Asian trading session on Tuesday. This marks the third consecutive day of gains for the precious metal, with a total of five days of positive movement in the past six. The increase is attributed to a weaker-than-expected US jobs report released last Friday, which suggested a cooling labor market.
This in turn weakened the case for the US Federal Reserve (Fed) to raise interest rates, prompting investors to move towards the non-yielding asset of gold. Historically, gold has been widely used as a store of value and medium of exchange, and today it is seen as a safe-haven asset during turbulent times. Its value is largely influenced by the US Dollar, as a stronger Dollar tends to bring down the price of gold, while a weaker Dollar can drive up the precious metal's price.
Central banks are the largest holders of gold, often adding to their reserves during times of economic uncertainty to boost perceived economic strength and currency stability. In 2022, central banks purchased 1,136 tonnes of gold, equivalent to around $70 billion, the highest yearly purchase since records began. The latest gains in gold prices are driven by expectations of lower interest rates, inflation concerns, and geopolitical instability.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
