Gold prices extended their upward trend for the fifth consecutive day trading above $4,300, the highest level since October 21, amid the USD currency struggling at a two-month low.
At 9 am, gold prices were at $4,312, up 0.30% since it opened early Monday in Asian trading.
Pressure on the US dollar is currently driven by the Federal Reserve’s (Fed) dovish move in its interest rate meeting last Thursday, when the central bank implemented a 25 basis point cut, but at the same time still creates uncertainty with hawkish signals for the next policy direction.
It’s also a busy week for investors as high-impact economic data releases are due to be released throughout the week and will have a significant impact on the US dollar.
In addition, the still pending negotiations on the Russia-Ukraine peace treaty continue to maintain geopolitical risks, thus becoming an additional supporting factor for gold as a safe-haven asset.
These supporting factors, to a greater extent, have managed to balance the risk-taking sentiment in the market and have done little to prevent the safe-haven asset from continuing to rise.
This situation further suggests that the path of least resistance for gold bullion remains in the upward direction.
