Gold prices started the new week with gains. Recovering from the losses seen on Friday, gold per ounce is trading above $4,100, moving back into positive territory.
In the markets, the continued decline in oil prices, pressure on technology stocks, and the slight depreciation of the dollar stood out as key factors supporting gold. The investigation into Nvidia CEO Jensen Huang creating pressure on Asian tech stocks has limited risk appetite while increasing demand for safe-haven assets.
The rise in gold had slowed at the end of last week as strong US employment data strengthened expectations that the Fed might raise interest rates. For gold, which does not provide interest income, the expectation of tighter monetary policy continues to be a factor putting pressure on prices.
Oil prices, meanwhile, continued their decline as investors weighed diplomatic efforts to end the US-Iran conflict alongside the risks of new attacks in the region. The weak trend of oil in recent sessions is also being closely monitored in terms of pricing regarding inflation and bond yields.
Vantage Global Prime market analyst Hebe Chen stated that political uncertainty provides support for gold prices, but Fed expectations and Treasury bond yields are limiting the recovery. Chen noted that upcoming CPI data will test whether safe-haven demand can overcome the pressure stemming from the dollar.
News Source: 12punto
