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Apr 11, 2025
Rising fears boost safe havens, pressure the dollar
Investors await Fed signals as gold surges and dollar slips
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Gold prices today jumped to exceed the 3210 -ounce barrier, supported by an increase in investors' demand for safe assets, in light of the increasing concern about the future of the global economy and the continued geopolitical tensions. This sharp rise also came in parallel with the decline in the US dollar index, which decreased with the escalation of expectations towards the federal reserve to alleviate its monetary policy during the coming period. Gold is currently seen as the safest tool, especially after conflicting statements by US federal officials regarding the interest rate path, which made the markets increase in anticipation of the report of the bank's last meeting tomorrow. |
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Markets hope to obtain more clear signals about the timing of the start of cash facilitation, especially after the recent data that has shown a slowdown in a number of vital sectors within the United States, which supports the possibility of reducing interest during the summer.
On the other hand, the dollar was subjected to clear pressure as a result of declining returns on the treasury bonds, and the investors towards currencies with a higher return such as the euro and the pound sterling, which increased the selling pressure on the American currency.
With these factors continuing, gold may continue its ascending direction, especially if the tone of the Federal report comes towards the monetary facilitation, while the dollar will remain vulnerable to further declines unless new references support its stability.