During the last trading day and into today’s Asian session, gold has been rising steadily, driven by several key factors, breaking out of the strong consolidation zone at $3,250, signaling the potential for continued rallies toward the next psychological level at $3,350.
This move is further supported by rising geopolitical tensions and growing concerns over the U.S. fiscal deficit.
Reports indicating that Israel may be planning to strike Iranian nuclear facilities have escalated tensions in the Middle East, raising fears of a broader regional conflict.
Meanwhile, uncertainty remains over the Russia-Ukraine war, as both parties prepare for ceasefire talks. However, the U.S. is expected to take a more passive stance in the process, adding to the ambiguity.
Lastly, concerns over the fragile state of U.S. fiscal health, compounded by the Federal Reserve’s cautious economic outlook and the recent U.S. credit rating adjustment by Moody’s -- which was a one-notch downgrade, have increased investor appetite for gold, reinforcing the yellow metal’s role as a safe haven asset in times of uncertainty.
This move is further supported by rising geopolitical tensions and growing concerns over the U.S. fiscal deficit.
Reports indicating that Israel may be planning to strike Iranian nuclear facilities have escalated tensions in the Middle East, raising fears of a broader regional conflict.
Meanwhile, uncertainty remains over the Russia-Ukraine war, as both parties prepare for ceasefire talks. However, the U.S. is expected to take a more passive stance in the process, adding to the ambiguity.
Lastly, concerns over the fragile state of U.S. fiscal health, compounded by the Federal Reserve’s cautious economic outlook and the recent U.S. credit rating adjustment by Moody’s -- which was a one-notch downgrade, have increased investor appetite for gold, reinforcing the yellow metal’s role as a safe haven asset in times of uncertainty.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.