Why Gold is Rising Again: What US Investors Should Know

Gold prices are rising again this week after falling to recent lows. This is because investors are more optimistic in the face of global uncertainty. Gold finished higher following a week of ups and downs. This was due to weaker job data and growing concerns that the Federal Reserve would not raise interest rates any further in the near term.

A complex relationship between gold and the Fed

Last week’s US job figures showed a slowdown in job growth and a little increase in unemployment.  This prompted hopes that the Fed’s policy tightening would come to an end. When individuals stop thinking about rate hikes, gold becomes more enticing since it pays no interest. This week, gold remained around $2,360 as traders altered their minds about monetary policy.

Demand for Safe Havens and Global Uncertainties

Even though the US economy is deteriorating, gold continues to benefit from safe-haven buying. Many investors want stability in precious metals as a result of increasing geopolitical tensions and concerns about slowing global development. The World Gold Council reports that demand is high in major markets such as China and India.  Central banks in emerging economies continue to buy gold to safeguard themselves from currency swings.

What US Investors Should Keep An Eye On

Gold’s recent surge may be a sign of a longer-term shift for US investors.   Gold could rise considerably further if inflation remains strong and interest rates begin to fall early next year. It will be critical to monitor the Fed’s comments and upcoming inflation data.   Analysts are closely monitoring the July FOMC meeting to see what it may signify for the future.

Also read: Bitcoin Eyes New Heights While Ethereum and Ripple Spark Fresh Bullish Momentum