SMM News: the rising trend of the gold market is not over, the spot gold price is approaching the $1890 / oz mark, only more than $30 away from the all-time high.
The recent intensification of geopolitical risks has fuelled a further rise in risk aversion and boosted gold prices.
The spot gold price, currently close to $1890 an ounce, is very close to an all-time high of 1920.
In addition, the extremely low interest rates that underpinned gold in the previous week and the loose monetary policy of central banks also continued.
Ed Moy, chief strategist at Valaurum, pointed out that the current easing policy is very surprising, which makes the market worry about whether so much liquidity will lead to a surge in inflation.
"when people are worried, they choose to leave the game without taking risks, and gold is often the choice at this time."
The continued development of the epidemic in the United States means that it is extremely difficult for its economy to restart, and this week's data on initial claims for unemployment benefits in the United States have rebounded, showing its economic difficulties.
FXTM said that at a time when US stocks are overvalued, a shift to gold is clearly a safe option.
"it will only be a matter of time before gold reaches a new high."
Under the performance of the US economy, the market is waiting for its next round of stimulus, and the boost to gold will continue.
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