Gold prices rose on Thursday, flirting with fresh multi-week highs as market sentiment turned cautious ahead of key economic data releases. XAU/USD gained traction as investors sought safe-haven assets, spurred by concerns over slowing global growth and ongoing geopolitical tensions.
Source – FXStreet
The precious metal’s resilience has been supported by a weaker U.S. dollar, which slid after the Federal Reserve signaled a potential pause in rate hikes. Traders are now closely watching upcoming U.S. inflation figures, which could shape the Fed’s next policy moves. Analysts predict gold may maintain upward momentum if the data suggests prolonged economic uncertainty.
The rally in gold prices also reflects growing demand for risk hedges amid volatile equity markets and mixed economic indicators. Central banks’ sustained interest in bolstering their reserves has further underpinned the metal’s appeal. While technical indicators suggest XAU/USD could challenge higher resistance levels, analysts caution that stronger-than-expected inflation data or renewed hawkish signals from the Fed could temper the recent bullish momentum.
