Gold Poised for Best Week Since January!
Gold prices strengthened again during Friday's trading (August 7), hovering around US$4,271 per troy ounce. Throughout the week, gold has risen more than 5% and is on track to record its largest weekly gain in over six months.
The rise was supported by "dip-buying." Investors viewed gold's ability to hold above the psychological US$4,000 level as a signal that buying interest remains robust.
Gold even briefly broke through the US$4,300 mark on Thursday amid market optimism that the Strait of Hormuz would reopen. However, that optimism waned after reports emerged that Iran had attacked targets deemed hostile and planned to restrict US and Israeli vessels.
Interestingly, gold did not face significant downward pressure from these escalating tensions. The market assesses that this week's rally was driven not only by geopolitics but also by technical factors and diminishing confidence in the Federal Reserve's hawkish stance.
Demand also came from institutional investors. Gold-backed ETFs in China saw renewed inflows, indicating that some investors still view current prices as an opportunity to increase their positions.
Newsmaker Analysis: Gold's momentum remains bullish, though the roughly 60% probability of a Fed rate hike in September poses a lingering risk. If gold can sustain levels above US$4,250, the possibility of re-testing US$4,300 remains open. However, strong Non-Farm Payroll (NFP) data and a rise in the dollar or bond yields could trigger a short-term correction. (asd)*
Source: Newsmaker.id
