Gold Nears Record High As U.S. Dollar Weakens And Equities Stumble

(MENAFN- Yolo Wire) The price of %Gold is hovering just below its all-time high of $2,790.07 U.S. as the American dollar weakens and equity markets selloff led by a steep decline in technology stocks.

Spot gold prices are now at their highest level in nearly three months, a sign that some investors are turning to the precious metal for safety amid growing market uncertainty.

Geopolitical uncertainty and inflation concerns under the new administration of U.S. President Donald trump are reinforcing gold’s appeal as a hedge for investors.

At the same time, gold is getting a lift as the U.S. dollar declines and expectations grow for the U.S. Federal Reserve to hold interest rates steady at its Jan. 29 policy meeting.

Markets are pricing in a more than 99% chance of no change in U.S. interest rates. No change would support gold, which benefits in low-interest-rate environment due to its lack of yield.

Gold’s currently trading at $2,757.30 U.S. per ounce, having gained nearly 3% so far this year. The precious metal is rising as technology stocks lead equity markets around the world lower.

U.S. Treasury yields are down as investors seek safety from the tech stock decline. The benchmark 10-year yield has dropped 11-basis points to 4.514%.

At the same time, the U.S. dollar index has slipped 0.28% to 107.16 U.S., close to a one-month low for the greenback.

The market selloff has been triggered by news of a Chinese %ArtificialIntelligence (A.I.) start-up company called %DeepSeek unveiling a low-cost model.

The Chinese A.I. model has sparked concerns about overvalued U.S. tech stocks and the amount of money being spent by American companies on A.I. products.

Commodities analysts say the technical and fundamental outlook for gold remains extremely bullish. A breakout above $2,790.07 U.S. could pave the way for a test of the $3,000 U.S. level.

Gold’s safe-haven appeal only seems to be growing with the Fed likely to hold rates steady and global economic uncertainty rising, say analysts.

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