Gold’s Longest Winning Streak Since January 2023
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With every ounce bringing a victory, gold futures notched their fifth consecutive weekly surge, surmounting market odds and defying previous performance metrics.
“It’s fascinating to witness the unusual behavior of gold in the present circumstances,” remarked Saxo Bank’s Ole Hansen, acknowledging the metal’s unconventional trajectory amidst economic flux.
According to Hansen, gold’s remarkable 16% year-to-date rally is a testament to a medley of factors – from geopolitical unrest linked to Middle Eastern tensions and the conflict in Ukraine, to robust consumer demand in China, increased interest from central banks, escalating debt-to-GDP ratios across key economies, and the looming specter of inflation resurgence.
As the week drew to a close, front-month Comex gold (XAUUSD:CUR) contracts for April delivery capped the period with a 1.8% surge, closing at $2,398.40 per ounce. April Comex silver (XAGUSD:CUR) showcased a similar robust performance, finishing up by 1.9% at $28.808 per ounce, registering a 1.7% uptick on Friday.
“The ebb and flow in the Middle East continues to grip market sentiments,” highlighted David Meger of High Ridge Futures. He suggested that while a de-escalation in the region could lead to a short-term retreat in gold prices, the broader upward trend for gold remains intact. This is particularly pertinent as the Federal Reserve’s inclination towards rate cuts may not align with market anticipations.
