Gold prices have been on a tear in 2020, and the XAU/USD (gold vs. US dollar) is no exception. The XAU/USD has gained 3% in the last week and is now nearing the $2,000 mark. This is a remarkable feat for gold, which has not seen such levels since 2011.
The rally in gold prices is being driven by a number of factors. The most important of these is the ongoing uncertainty in the global economy due to the COVID-19 pandemic. As investors seek safe havens from the volatility of stock markets, gold has become an attractive option. Additionally, with interest rates at historic lows, gold has become an attractive investment option due to its lack of correlation with other asset classes.
The rally in gold prices is also being driven by a weaker US dollar. The US dollar index, which measures the strength of the US dollar against a basket of other currencies, has been on a downward trend since March. This has made gold more attractive to investors as it is priced in US dollars.
Looking ahead, it is likely that gold prices will remain strong in the near term. The ongoing uncertainty in the global economy and the weak US dollar are likely to continue to support gold prices. Additionally, with central banks around the world continuing to inject liquidity into the markets, gold is likely to remain an attractive investment option.
However, it is important to note that gold prices are highly volatile and can move quickly in either direction. As such, investors should be aware of the risks associated with investing in gold and should always have an exit strategy in place.
Overall, gold prices have been on a remarkable rally in 2020 and the XAU/USD has gained 3% in the last week and is now nearing the $2,000 mark. With ongoing uncertainty in the global economy and a weak US dollar, it is likely that gold prices will remain strong in the near term. However, investors should always be aware of the risks associated with investing in gold and should always have an exit strategy in place.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. Access Here.
- Source: Plato Data Intelligence: PlatoAiStream
Clarida Expects No Fed Blackout and Forecasts One or Two Rate Hikes Ahead, According to Forexlive.
Richard Clarida, the Vice Chairman of the Federal Reserve, recently stated that he does not expect a Fed blackout and...