Kitco News: International Gold Prices Surge to Multi-Year Highs
London, United Kingdom – Gold prices surged to multi-year highs on Thursday, driven by a combination of geopolitical tensions and a weakening US dollar.
Geopolitical Uncertainty
The ongoing war in Ukraine and heightened tensions between China and Taiwan have fueled safe-haven demand for gold. Investors are flocking to the precious metal as a store of value in uncertain times.
Weakening US Dollar
The US dollar has been losing ground against major currencies amid expectations of a less hawkish monetary policy from the Federal Reserve. This has made gold more attractive to investors holding other currencies.
Growing Inflation
Rising inflation around the world has also supported gold prices. Gold is often seen as a hedge against inflation as its value tends to maintain its purchasing power over time.
Technical Analysis
Technical analysts point to a breakout above key resistance levels, indicating further upside potential for gold prices. The metal has cleared the $1,850 per ounce mark, which could pave the way for a rally towards $2,000.
Market Sentiment
Market sentiment for gold remains bullish, with analysts predicting further gains in the coming months. Some analysts believe that gold prices could eventually break above the record high of $2,075 per ounce set in 2020.
Analysts’ Outlook
“We are seeing a flight to safety and a loss of confidence in risk assets,” said Ole Hansen, head of commodity strategy at Saxo Bank. “Gold is likely to continue to benefit from this uncertainty.”
“The fundamentals for gold are supportive, and we expect prices to continue to trend higher in the near term,” said Bart Melek, head of global commodities strategy at TD Securities.
Conclusion
International gold prices have surged to multi-year highs, driven by a combination of geopolitical tensions, a weakening US dollar, growing inflation, and strong technical momentum. Market sentiment for gold remains bullish, and analysts predict further gains in the coming months.
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