As mentioned in last week's analysis, the outlook for XAUUSD remains positive following a period of correction and recovery, particularly evidenced by its swift rebound from recent lows and retesting of the all-time high (ATH) at $2308 reached yesterday. It is currently trading at a new high of $2258, having surpassed the $2308 mark, marking a robust $12 increase and a 0.08% rise today. So, what are the driving factors influencing the price of gold?
Amidst ongoing economic uncertainties and geopolitical tensions, investors continue to seek refuge in safe-haven assets like gold, bolstering its demand and consequently, its price. Additionally, dovish monetary policies adopted by central banks globally, coupled with concerns over inflation and currency devaluation, further enhance gold's appeal as a hedge against these risks. Moreover, the recent volatility in equities markets and fluctuations in the US dollar have also contributed to the upward momentum in gold prices.
Overall, the confluence of these factors underpins the bullish sentiment surrounding XAUUSD, driving its price to new highs and reinforcing its status as a reliable asset for investors seeking stability and protection against market volatility.