Gold Price Forecast: Bulls Seize Control on Growing Safe Haven Appeal, $2050 Up Next

Gold prices found its legs in the US session rising back above resistance at the $2040/oz level. A slightly stronger US Dollar kept Gold bulls at bay in the European session, but ongoing comments from Fed policymakers around rate cuts continue to weigh on the Greenback.

SAFE HAVEN APPEAL AND US DOLLAR WEAKNESS

Geopolitical tensions have become a key driver this week following developments in the Middle East. The Red Sea has become breeding ground of uncertainty, and this seems as if it is only going to intensify. This leaves Gold in the driver’s seat with more gains in store if no solution is found to the ongoing strife and tension in the Middle East.

The renewed US Dollar weakness has also assisted Gold hold the high ground and continue its advance. Federal Reserve policymakers have this week struck a dovish tone with most speaking about the amount of rate cuts needed in 2024 with very little push back besides the odd comment about monitoring data moving forward.

The only push back in terms of comments came from Policymaker Barkin saying that he thinks inflation is more stubborn than the average Fed official.

US Treasury Yields also continued their struggles today with both the 2Y and 10Y yield which is also benefitting Gold.

（Source:Dailyfx-Zain Vawda）