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| Gold Price Soars by Over 3% Approaching $2,000 Amid Lower Yields and Banking Jitters |
Gold price has risen more than 3% on Friday, approaching $2,000 per ounce as investors seek safe-haven assets amid lower yields and banking sector concerns. The price of gold has gained over $100 this week, making it one of the best-performing weeks for the commodity in years.
The recent financial turmoil has weighed on monetary policy expectations and the economic outlook, driving investors towards gold. The sharp reversal in Treasury yields has also played a significant role in the surge of gold prices. With the Federal Reserve expected to announce its decision on monetary policy next week, analysts are predicting a 25 basis point rate hike, but the possibility of a pause cannot be ruled out.
Despite the impressive rally in gold prices, traders are advised to take extra caution as even consistent upward movement can be subject to sharp corrections. While gold prices are expected to remain high, market conditions remain unpredictable, and investors should be prepared for potential volatility.
