As the world enters a new week, there are several unexpected factors that could shape and influence Monday’s gold prices, primarily driven by geo-political tensions and strategic financial decisions. Here are the top five factors:
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US-Venezuela Relations: Tensions between the US and Venezuela have further escalated due to the former’s aggressive tactics. Previously friendly relations have now soured, potentially destabilizing the South American nation’s gold reserves.
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Tether’s Gold Buying: Renowned cryptocurrency organization, Tether, is reported to be heavily purchasing gold. Tether’s involvement in the gold market is likely to drive up demand and subsequently, the price of the precious metal.
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Global Economic Instability: As we continue to wade through the aftermath of the global pandemic, economies worldwide struggle to stabilize, making gold an attractive asset for investors seeking safety.
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US Federal Policy: The US Federal policy continues to influence gold prices. We remain vigilant of any potential monetary decisions that could affect gold’s standing as a safe haven asset.
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Currency Fluctuations: Ongoing fluctuations in the value of the US dollar and other leading currencies can impact gold prices, as the metal often moves inversely to the dollar.
These factors, combined with the usual supply-demand dynamics, will surely put gold in the spotlight for Monday’s market action. Read More
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