Gold prices hit a fresh all-time high in early Tuesday trading and are now hovering just below the $3,500 mark. The haven appeal of bullion continues to attract investors unsettled by the US administration’s erratic trade policies and, more recently, by attempts to interfere with the Federal Reserve’s independence — including pressure for immediate rate cuts and reported discussions about the possible removal of the central bank’s Chair. One of the key reasons US assets have long dominated global financial markets is the perception of stability and strong governance. Recent developments have begun to erode that reputation, prompting capital outflows from the US. Amid a weakening US dollar — notably, alongside falling Treasury yields— and a backdrop of economic and geopolitical uncertainty, it’s unsurprising to see gold prices climbing. Although the precious metal appears technically overbought, few traders would risk betting against it in the current environment of heightened uncertainty and weakening confidence in US assets — suggesting there may still be further upside for gold prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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