XAU continues to set new highs
Updated
XAU set a new peak thanks to expectations that the Fed would cut interest rates and increased geopolitical risks
Gold prices increased by 1.4%, reaching 2,450.07 USD/ounce, surpassing the record set in April. Traders are increasing expectations that the Fed will cut interest rates, as early as September, which should support gold prices.
“Gold's recovery is driven by geopolitical risks in Iran, and investors are currently reluctant to reduce their positions in the gold market due to low liquidity levels in Asia.”
Hedge funds trading Comex futures have boosted bullish bets on gold to a three-week high, according to the latest data from the Commodity Futures Trading Commission.
This increase shows that gold prices have broken out of a narrow trading range in recent weeks when the outlook for US interest rates has been gloomy. Gold prices have now increased nearly 20% this year.
The recovery of gold prices is also thanks to speculative activities of central banks, strong demand from Asian markets, especially China as well as increased geopolitical tensions in Ukraine and the Middle East.
Gold prices increased by 1.4%, reaching 2,450.07 USD/ounce, surpassing the record set in April. Traders are increasing expectations that the Fed will cut interest rates, as early as September, which should support gold prices.
“Gold's recovery is driven by geopolitical risks in Iran, and investors are currently reluctant to reduce their positions in the gold market due to low liquidity levels in Asia.”
Hedge funds trading Comex futures have boosted bullish bets on gold to a three-week high, according to the latest data from the Commodity Futures Trading Commission.
This increase shows that gold prices have broken out of a narrow trading range in recent weeks when the outlook for US interest rates has been gloomy. Gold prices have now increased nearly 20% this year.
The recovery of gold prices is also thanks to speculative activities of central banks, strong demand from Asian markets, especially China as well as increased geopolitical tensions in Ukraine and the Middle East.
Note
SELL XAU 2442 -2444TP1: 2438
TP2: 2430
SL: 2450
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