Gold prices continued their record-breaking surge on Wednesday, breaching the $3,300 per ounce mark with spot gold rising over 3.5%. Meanwhile, U.S. gold futures rose by 3.3%. A weakening dollar and escalating global trade tensions have driven investors towards safe-haven assets like gold, leading to a significant rise in prices.
The recent surge in gold prices is closely linked to the weakening of the dollar, which continues to decline against other currencies, nearing a three-year low touched last week. This makes gold more attractive to non-dollar holders. Gold prices have increased nearly $700 this year, supported by trade disputes, anticipated interest rate cuts, and strong purchases by central banks.
As gold prices surpass $3,300, the market is focused on further psychological price points. Some analysts believe that bulls may target $3,400, $3,500, or even higher. However, the market is also wary of possible profit-taking or selling pressure from improved U.S.-China trade tensions.
In addition, despite the impressive rise in gold prices, some viewpoints suggest that the current surge is somewhat detached from fundamentals, posing a risk of a pullback. However, over the past year and more, every drop in gold prices has seen buying support, with limited pullback.
Meanwhile, the performance of other precious metals is also drawing attention. Spot silver rose by 1.7%, reaching $32.85 per ounce; platinum increased by 0.8%, to $967.45 per ounce; while palladium slightly decreased by 0.1%, to $970.42 per ounce.
