Gold extended its weekly rally, surging above $1,990 for the first time in five months on Friday. XAU/USD continues to benefit from safe-haven flows as investors seek to minimize risks, amplified by the easing of US Treasury bond yields. The escalating tensions in the Middle East further fueled gold's climb, with Federal Reserve Chair Jerome Powell endorsing a stable interest rate policy in his Thursday speech. Demand for gold bars rose amid Israel's military preparations to enter Gaza with the aim of neutralizing Hamas, the Palestinian military group. Despite President Joe Biden's humanitarian aid pledge to civilians in Gaza, Iran might intervene directly in the conflict, potentially escalating the situation into a worrisome Middle Eastern conflict.
During Thursday's speech at the New York Economic Club, Federal Reserve Chair Jerome Powell, alongside his colleagues - Philip Jefferson, Austan Goolsbee, Michael Barr, and Raphael Bostic - outlined a neutral stance on interest rates. Powell acknowledged that the high US Treasury bond rates in recent years significantly impact overall spending and investments.
The market continues to monitor geopolitical developments closely, and gold's ascent reflects the growing uncertainty, prompting investors to seek refuge in the precious metal. Powell's steady stance on interest rates also contributed to the positive sentiment, although the situation remains delicate given the volatile geopolitical landscape.
In summary, gold's upward trajectory persists amid geopolitical tensions and cautious market sentiment. Investors remain watchful, and Powell's stance on interest rates has provided some stability, though challenges persist in the face of escalating global conflicts.
During Thursday's speech at the New York Economic Club, Federal Reserve Chair Jerome Powell, alongside his colleagues - Philip Jefferson, Austan Goolsbee, Michael Barr, and Raphael Bostic - outlined a neutral stance on interest rates. Powell acknowledged that the high US Treasury bond rates in recent years significantly impact overall spending and investments.
The market continues to monitor geopolitical developments closely, and gold's ascent reflects the growing uncertainty, prompting investors to seek refuge in the precious metal. Powell's steady stance on interest rates also contributed to the positive sentiment, although the situation remains delicate given the volatile geopolitical landscape.
In summary, gold's upward trajectory persists amid geopolitical tensions and cautious market sentiment. Investors remain watchful, and Powell's stance on interest rates has provided some stability, though challenges persist in the face of escalating global conflicts.
