The spot price for Gold reached an all-time high on Wednesday morning, surpassing the $4,200 mark! Demand for the precious metal remains robust, supported by strong inflows into safe havens and the growing perception that the Federal Reserve is adopting an increasingly dovish stance.
Concerned investors continue to flock to gold as uncertainty mounts amid the ongoing US government shutdown, which negatively impacts economic prospects and delays the release of key data.
The rally is also fueled by the recent escalation of trade tensions between the US and China, which has rekindled fears of a full-blown trade war between the world’s two largest economies.
In the absence of new economic indicators, traders are closely monitoring public statements from high-ranking Fed officials, who continue to pave the way for further interest rate cuts – a dynamic that continues to support the non-yielding precious metal.
Against this backdrop and given the increasing speculative trading activity, the path of least resistance remains upward, with any dips likely to be viewed as buying opportunities.
Ricardo Evangelista – Senior Analyst, ActivTrades
