International Gold Shines Amidst USD Weakness
Gold prices surged on Tuesday, July 4, 2023, reaching their highest level in over two months as the US dollar weakened against a basket of major currencies.
The rise in gold was driven by a combination of factors, including:
* Weakening US Dollar: The US dollar index (DXY) fell to its lowest level since April 2023, making gold more attractive to investors holding other currencies. A weaker dollar typically makes it cheaper for foreign buyers to purchase gold.
* Safe-Haven Demand: Demand for gold as a safe-haven asset increased amid concerns over global economic growth and geopolitical uncertainties. The ongoing war in Ukraine and the escalating tensions between the US and China have prompted investors to seek refuge in precious metals.
* Technical Breakout: Gold prices broke above a key technical resistance level at $1,880 per ounce, triggering further buying interest. The breakout suggests that the uptrend may continue in the near term.
Analysts at FXStreet noted that gold’s recent rally has been “impressive,” but cautioned that the market could experience some short-term volatility. They advised investors to watch for support levels around $1,850 and $1,830 per ounce, which could provide an entry point for new positions.
Meanwhile, resistance levels to watch include $1,900 and $1,920 per ounce. A break above these levels could signal further upside potential for gold.
Overall, the outlook for gold remains bullish in the short term. The weakening US dollar, safe-haven demand, and technical momentum are all supportive of higher prices. However, investors should be aware of potential risks, including geopolitical events and changes in the global economic outlook.
原创文章，作者：杰克，如若转载，请注明出处：https://hengxing99.com/12385.html
