The recent rise in gold prices is linked to several factors related to US monetary policies:
Dollar weakening: As the dollar weakens, gold becomes more attractive to investors dealing in other currencies, pushing prices higher.
Interest rate forecast: Investors await the Federal Reserve meeting, with interest rate fixation or cut expected in the near future. Interest Cut Reduces Bond Yields, Supporting Safe-Haven Gold Demand.
Economic and geopolitical tensions: Global uncertainty boosts appetite for gold as a hedge.
Fed policy outlook and inflation data remain crucial in determining gold’s future direction.