This news article is older than 30 days.
Gold continues to flirt with yesterday’s highs and could be set to test 2023 highs if dollar weakness continues.
The yellow metal is flourishing amid growing bets the Federal Reserve will not raise interest rates further. Anticipation around key economic readings this week has also kept safe-haven demand upbeat, as markets await signs of cooling US growth and a stalling Chinese recovery.
Spot gold traded around $2,015 per ounce by 10:00 GMT after the US dollar sank to three-month lows during Asian hours.
A triple-top pattern has kept bullion capped below $2,080 since 2020, failing to break that barrier in August 2020, May 2022 and this year May. Gold now looks positioned to take a fourth crack at breaching that level if dollar weakness persists.
Markets are awaiting data this week, especially Friday’s PCE inflation figures, for insight into US growth and the Fed policy outlook. Evidence of moderating inflation would give the Fed less room for maintaining higher rates, benefiting gold. Economic worries could also spur safe haven flows.
Though Fed speakers talk on Tuesday, guidance will stay limited before next month’s meeting where rates are seen on hold. Any outlook shift would aid gold by lowering its opportunity cost.
For now, gold certainly appears to be on track to test 2023 highs.