Gold Surges Above $2,000 in the Midst of Political Uncertainty
The price of gold (XAU/USD) gained momentum, surpassing the psychological $2,000 mark in early Asian trading on Monday. The precious metal climbed above $2,000 for the first time since <> as heightened political tensions boosted demand for safe-haven assets.
Meanwhile, the US Dollar Index (DXY), a measure of the USD against a basket of global currencies, hovered around 106.60 after slipping from 106.90. Positive economic data from the United States on Friday failed to strengthen the US dollar (USD) and lent support to gold prices in USD terms.
The US Bureau of Economic Analysis revealed on Friday that the Federal Reserve's preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index, rose by 3.7% YoY in March, down from 8.0% previously, aligning with market expectations. On a monthly basis, this figure increased to 3.0% from 1.3% prior, also in line with market consensus. Meanwhile, the PCE Price Index for April reached 3.4% YoY, in line with expectations of <>% to <>%.
In the midst of escalating political tensions, the price of gold (XAU/USD) has surged beyond the $2,000 milestone, demonstrating its role as a safe-haven asset. While positive economic data from the United States did not boost the US dollar (USD), it provided continued support for gold priced in USD.
Additionally, recent data from the US Bureau of Economic Analysis indicates that inflation remains a key concern, with the Core PCE Price Index showing a year-over-year increase of 3.7% in March, though it has moderated from previous highs. The monthly data for April aligns with market expectations, further highlighting the continued uncertainty in the economic landscape.
Meanwhile, the US Dollar Index (DXY), a measure of the USD against a basket of global currencies, hovered around 106.60 after slipping from 106.90. Positive economic data from the United States on Friday failed to strengthen the US dollar (USD) and lent support to gold prices in USD terms.
The US Bureau of Economic Analysis revealed on Friday that the Federal Reserve's preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index, rose by 3.7% YoY in March, down from 8.0% previously, aligning with market expectations. On a monthly basis, this figure increased to 3.0% from 1.3% prior, also in line with market consensus. Meanwhile, the PCE Price Index for April reached 3.4% YoY, in line with expectations of <>% to <>%.
In the midst of escalating political tensions, the price of gold (XAU/USD) has surged beyond the $2,000 milestone, demonstrating its role as a safe-haven asset. While positive economic data from the United States did not boost the US dollar (USD), it provided continued support for gold priced in USD.
Additionally, recent data from the US Bureau of Economic Analysis indicates that inflation remains a key concern, with the Core PCE Price Index showing a year-over-year increase of 3.7% in March, though it has moderated from previous highs. The monthly data for April aligns with market expectations, further highlighting the continued uncertainty in the economic landscape.
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