Gold prices are on the rise as global growth concerns and a softer dollar drive investors to seek the safe-haven asset. Gold traded near its highest in four weeks, with spot gold easing slightly to $1,233.80 an ounce but remaining close to a peak of $1,237.30 hit on Monday.
Investors are turning to gold-backed exchange-traded funds (ETFs) after a sell-off in stock markets, with inflows seen for the first time in a month. The dovish Federal Open Market Committee minutes and weak German data have fueled interest in gold as a defensive asset.
The SPDR Gold Trust saw an inflow of 1.79 tonnes on Monday, its first inflow since September 10. Gold prices posted their best week in nearly four months last week as the dollar fell after a 12-week winning streak.
The technical outlook for gold is bullish, with traders expecting sharp gains after a solid break above $1,240. With global equities in a selloff and Japanese stocks skidding to two-month lows on concerns about the world economy, demand for safe-havens like gold is expected to increase.
Overall, the outlook for gold remains positive as investors seek out the precious metal amid global economic uncertainties and volatile market conditions. Gold prices are expected to continue their upward trend as investors turn to safe-haven assets in the current market environment.
