Gold Resumes the Upside As Risk Sentiment Remains Positive

Gold has turned bullish again, increasing above $2,430, after a strong dive on Monday morning as markets went into a meltdown. The volatility seems to have calmed in financial markets, which is keeping buyers in control and keeping risk sentiment steady as we head toward the end of the week.

Quiet Asian and European Sessions

The Asian and European sessions were largely uneventful today, aside from the Chinese CPI and PPI inflation figures, which caused minimal market volatility. No significant economic data or major headlines emerged. Following yesterday’s US jobless claims data, risk sentiment remained positive, and unless any alarming geopolitical developments occur, this sentiment is likely to persist through the weekend. With equities and bitcoin both up for the day, risk assets are performing well across the markets.

Gold Gains Upward Momentum

Gold has regained upward momentum, climbing by more than $10 to surpass $2,430. This follows a substantial increase yesterday and a series of higher lows over the past week, offering reasons for optimism. Despite a challenging day for gold due to last week’s downturn in global markets and Monday’s volatility, there is a strong case for buying gold dips as the US enters a cycle of rate cuts and the global economy slows down. The Middle East situation warrants caution, though the likelihood of a significant conflict, such as a war between Iran and Israel, appears low, the market has still priced in some risk.

Gold Chart Daily – Buyers Facing the 20 SMA Now

Gold Live Chart