While the financial markets are going through a period of turbulence, l’or (XAU/USD) continues to establish itself as a safe haven, recording a fourth consecutive day of increase. This dynamic is fueled by a cocktail of geopolitical tensions, expectations of monetary easing from the US Federal Reserve and disappointing results from technology sector giants.
Nvidia disappoints and strengthens interest in gold
Nvidia’s quarterly results, released Wednesday, marked an unexpected turning point. Despite better-than-expected numbers, the company’s stock fell 3%, a decline attributed to excessive expectations surrounding the artificial intelligence leader’s performance. This disappointment triggered a general movement of risk aversion, turning investors away from stocks and favoring safe assets like l’or.
Also read: Gold is getting closer to its record again!
At the same time, the US dollar, although down slightly on Thursday, remains a key player influencing gold prices. A weaker currency favors precious metals by making them less expensive for holders of other currencies to acquire.
The Fed’s speeches: towards monetary easing?
The Federal Reserve also weighed in on market trends this week. John Williams, president of the Bank of New York, said he anticipated a decline in inflation and a reduction in interest rates. These comments, reinforced by those of Susan Collins, president of the Boston Fed, have revived speculation about a more accommodating monetary policy, thus strengthening the appeal of gold, often seen as a bulwark against economic uncertainty.
However, the rise of cryptocurrenciesnotably Bitcoin, could slow down the progress of gold. Bloomberg data shows a significant increase in flows into Bitcoin-linked index funds, often at the expense of gold ETFs.
Technical analysis: a bullish pattern for gold
On the technical side, gold recently formed a Japanese candlestick pattern called “Three White Soldiers”, a pattern typically associated with sustained upward movement. This pattern is reinforced by a break above a long-term trendline and a test of the 50-day simple moving average, located around $2,661. Analysts identify $2,686 as the next threshold to watch, matching the September high.
Despite this short-term momentum, gold remains down on an intermediate trend. However, the underlying upward trend could work in favor of continued progression in the weeks to come.
Why is gold so fascinating?
For millennia, l’or symbolizes wealth and security. In addition to its central role in jewelry, this precious metal is considered a hedge against inflation and a diversification tool for investors. Central banks, particularly those of emerging economies such as China, India and Turkey, continue to strengthen their reserves, seeing in gold a lever of credibility for their national currency.
The influence of economic and geopolitical conditions
The correlation between l’or and other assets like the dollar or stocks remains a key subject of analysis. When stock markets falter or geopolitical threats emerge, gold shines brighter, attracting capital seeking safety. Conversely, a rise in interest rates or a strengthening of the dollar tends to limit its gains.
Gold’s performance in the coming months will largely depend on global economic decisions, international tensions and investor expectations. For now, the yellow metal seems well on its way to maintaining its status as a safe haven in an uncertain world.
