Gold Breaks New All-Time High Above $3,300 Per Ounce

(MENAFN- Investor Ideas) Investorideas, rated as a top 100 investment website for investment issues market commentary from Quasar Elizundia, Expert Research Strategist at Pepperstone.

"Gold prices reached a new all-time high today, solidifying their status as the preferred safe-haven asset in an increasingly complex global environment. Midweek trading saw the precious metal surge over 2.5%, firmly breaching the $3,300 per ounce psychological and technical barrier, with an intraday high of $3,317.90.

This remarkable rally occurs against a backdrop of persistent macroeconomic and geopolitical uncertainty. Gold's ascent is not an isolated event, but rather a continuation of a strong trend driven by a combination of key factors: ongoing trade tensions, the structural weakness of the U.S. dollar, and increasing strategic diversification by central banks.

The dollar's weakness, now trading near its lowest levels in three years, plays a pivotal role. A weaker dollar makes gold cheaper for investors using other currencies and reduces the relative appeal of dollar-denominated assets. This dynamic is eroding the perception of the dollar as a primary safe haven, directly benefiting gold.

Year-to-date, gold is up over 26%, rapidly approaching the robust 28% return registered in 2024, highlighting the underlying strength of demand. The main drivers of this continued momentum include:

Geopolitical and Trade Uncertainty: Ongoing global conflicts and renewed U.S.-China trade tensions (including recent tariffs and tech restrictions) are pushing investors toward gold.

Dollar Weakness and Fed Expectations: The USD's depreciation and market expectations of potential interest rate cuts by the Federal Reserve (with investors closely watching Jerome Powell's upcoming speech) reduce the opportunity cost of holding gold.

Central Bank Demand: Emerging economies like China have tripled their gold reserves (now near 8%) in a strategic shift away from dollar-linked assets, especially after events like the freezing of Russian reserves. This gold buying is not just a hedge-it's a strategic statement about the future of the global monetary order.

From a technical analysis perspective, gold has breached key levels. After breaking through $3,300, the next short-term resistance lies at $3,351, but if current conditions persist, the medium-to-long-term target is projected around $3,734 per ounce.

The outlook for gold remains constructive, supported by a robust mix of macroeconomic and geopolitical factors that reinforce its intrinsic value as a store of value and diversification asset in uncertain times."

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