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Global Economic and Political Developments Impact Gold Prices
Gold trading witnessed an increase for the third consecutive session, as recent US inflation data boosted confidence that the Federal Reserve will not rush to raise interest rates again next month. In this context, the inflation data released last Friday came in lower than expected, indicating that inflationary pressures on the US economy are not as strong as expected.
Thanks to this recent surge in gold prices, investors are reinforcing their bets that the Federal Reserve will stick to its current policy and refrain from raising interest rates again next month. This, in turn, supports demand for gold as a safe haven investment in light of expectations to maintain the current interest rate.
In addition, the price of gold is also influenced by global economic and political developments, including geopolitical tensions, trade wars, and economic crises. In this regard, gold remains a fundamental reference for investors in difficult times, as it is considered a safe haven that protects capital from market fluctuations.
Finally, the recent increase in gold prices over the past three sessions indicates continued demand for it as a safe haven investment, given the increasing expectations of maintaining the current interest rate by the US Federal Reserve.
