World gold prices fluctuated slightly, but were still in record high territory during the trading session on April 10. Political tensions and the purchasing power of world central banks still impact gold prices.
Theo Reuters, On April 10, world gold prices continued to reach record peaks due to emerging inflation risks and geopolitical tensions. Financial accumulation moves by central banks of countries cause gold metal prices to increase.
Spot gold only decreased slightly to 2,351.94 USD/ounce, after reaching a record high of 2,356.09 USD/ounce. Meanwhile, US gold futures prices increased 0.3% to 2,369.9 USD.
According to strategist Soni Kumari, due to geopolitical tensions, central banks in emerging markets are stockpiling gold to diversify risks, some fluctuations in the Chinese currency and the emergence of Inflation risk drives gold market prices.
World gold price chart from June 2023 to present.
Meanwhile, Phillip Streible – economist at Blue Line Futures in Chicago – said: “Buying momentum will continue to increase in the gold market unless CPI data is much hotter than expected. Cooler inflation reports could push gold prices to $2,400, even $2,500.”
Theo Reuters, Bullion is seen as a hedge against inflation and political instability. However, higher interest rates reduce the appeal of holding non-yielding assets.
Meanwhile, CME Group data shows that there is about a 53% chance of the Fed cutting interest rates in June. Fawad Razaqzada – market analyst at City Index – said: “Despite the view that gold prices will increase, code, with current conditions, I predict there will be a bearish reversal.”
Trach Duong