Gold Holds Strong as USD Weakens Amid Economic Uncertainty👋Hello traders, what do you think about the current trend of OANDA:XAUUSD ?
Today, gold continues to hold above its high price levels, supported by a weaker USD and the demand for safe-haven assets amid the growing risk of a U.S. government shutdown. At the same time, the weak employment data further reinforces expectations that the Fed will cut interest rates this month.
Since the beginning of the year, gold has surged about 45%. Currently, this precious metal is just shy of the $4,000/ounce mark, reflecting strong investor confidence in gold during times of uncertainty.
On the other hand, with the U.S. government shutdown, sentiment towards the U.S. tends to turn negative, impacting both the USD and U.S. stocks. In fact, the latest ADP employment report shows that the U.S. private sector lost 32,000 jobs in September, far exceeding the forecast of only 3,000 job losses in August, heightening concerns about the U.S. economy.
Given the current political tensions and economic instability, with a 99% likelihood that the Fed will cut rates, according to CME FedWatch, gold could continue its strong upward momentum.
Investing in gold in this environment could continue to yield significant profits. Do you think the same? 💬 Let me know your thoughts in the comments!
