Gold hit a new all-time high on Wednesday, buoyed by hopes of further monetary easing by the US Federal Reserve (Fed) and the surge in violence in the Middle East.
After peaking at $2,670.54 per ounce in the morning, the price of the precious metal calmed down somewhat. At around 11:30 a.m., this safe haven was trading at $2,655.08. Over the course of a month, the yellow metal has jumped 5.7% and 28.6% since the beginning of the year.
This increase is supported by ‘hopes of further monetary easing and an exacerbation of geopolitical tensions’, stressed experts from the Trading Economics platform.
The clashes between the Lebanese Hezbollah and the Israeli army have indeed reached a new level. The Lebanese movement fired a missile towards Tel Aviv on Wednesday, while the IDF carried out new air strikes against the Islamist movement in Lebanon. The international community fears a conflagration in the region.
Macroeconomic data supported gold’s bullish trend after a fall in consumer confidence in the United States in September. “Markets are now awaiting new economic data this week,” including the PCE inflation index from the United States, the Fed’s preferred gauge, added specialists at Trading Economics.
“Traders are now focused on three risk events: US GDP data tomorrow, (Fed Chairman) Jerome Powell’s upcoming speech and PCE data on Friday,” listed Ricardo Evangelista. According to the ActivTrades analyst, these events “have the potential to have a significant impact on the markets.”
/ATS
