Gold prices continue to increase
Updated
Gold recovers its upward momentum on Friday and halts the decline seen earlier from its two-week high.
The defensive stance of the USD bulls, due to retreating US bond yields, provides support to the XAU/USD pair.
However, the possibility of the Fed implementing stricter policies in the future may limit any additional gains for the commodity.
The defensive stance of the USD bulls, due to retreating US bond yields, provides support to the XAU/USD pair.
However, the possibility of the Fed implementing stricter policies in the future may limit any additional gains for the commodity.
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Plan buy +500pipsNote
The price of gold surged to its highest level in over two weeks on Friday. Bulls regained control after a brief pause on Thursday, which was triggered by a temporary drop caused by higher-than-anticipated US inflation in September.
Note
The commonly held belief that the Federal Reserve's period of tightening monetary policy is coming to a close counteracts the potential stronger effect caused by high consumer prices in September. This provides additional support to gold, which is already being bolstered by heightened demand for safe-haven assets due to growing uncertainty surrounding the ongoing crisis in the Middle East.
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