Gold Surpasses $2,000 Amid Heightened Political Risks
Updated
: The price of gold (XAU/USD) has gained momentum, crossing the significant $2,000 threshold during early Asian trading on Monday. This marks the first time the precious yellow metal has risen above $2,000 since <> as escalating political turmoil drives the demand for safe-haven assets.
Simultaneously, the US Dollar Index (DXY), which measures the value of the US dollar against a basket of global currencies, fluctuated around 106.60 after a drop from 106.90. Despite optimistic economic data from the United States on Friday, the US dollar (USD) failed to strengthen, providing continued support for gold priced in USD.
On Friday, the US Bureau of Economic Analysis disclosed that the Federal Reserve's preferred inflation indicator, the Core Personal Consumption Expenditures (PCE) Price Index, showed a year-over-year increase of 3.7% in March, down from the previous 8.0%, aligning with market expectations. On a month-to-month basis, the figure rose to 3.0% from 1.3%, in accordance with market consensus. Meanwhile, the PCE Price Index for April matched expectations at 3.4% year-over-year, in the range of <>% to <>%.
In the midst of growing political uncertainties, the price of gold (XAU/USD) has surged past $2,000, reaffirming its role as a safe-haven asset. Despite positive economic data from the United States, the US dollar (USD) has remained subdued, further bolstering gold's appeal in USD terms.
Additionally, recent data from the US Bureau of Economic Analysis highlights the ongoing concern about inflation, as the Core PCE Price Index shows a moderated increase in March. The April data aligns with market projections, emphasizing the continuing economic uncertainty.
Simultaneously, the US Dollar Index (DXY), which measures the value of the US dollar against a basket of global currencies, fluctuated around 106.60 after a drop from 106.90. Despite optimistic economic data from the United States on Friday, the US dollar (USD) failed to strengthen, providing continued support for gold priced in USD.
On Friday, the US Bureau of Economic Analysis disclosed that the Federal Reserve's preferred inflation indicator, the Core Personal Consumption Expenditures (PCE) Price Index, showed a year-over-year increase of 3.7% in March, down from the previous 8.0%, aligning with market expectations. On a month-to-month basis, the figure rose to 3.0% from 1.3%, in accordance with market consensus. Meanwhile, the PCE Price Index for April matched expectations at 3.4% year-over-year, in the range of <>% to <>%.
In the midst of growing political uncertainties, the price of gold (XAU/USD) has surged past $2,000, reaffirming its role as a safe-haven asset. Despite positive economic data from the United States, the US dollar (USD) has remained subdued, further bolstering gold's appeal in USD terms.
Additionally, recent data from the US Bureau of Economic Analysis highlights the ongoing concern about inflation, as the Core PCE Price Index shows a moderated increase in March. The April data aligns with market projections, emphasizing the continuing economic uncertainty.
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