Gold closes above the 50-day SMA after the release of weak US data increases bets the Fed will lower interest rates. Lower interest rates are positive for Gold since they reduce the opportunity cost of holding the non-interest-paying asset. Gold is rising on Thursday to trade in the $2,350s after a string of weak data releases from the US and a change in tone from the Chairman of the Federal Reserve Jerome Powell, increased bets the Fed would cut interest rates earlier than previously expected.
The ongoing conflicts in the Middle East and Ukraine and a political lurch right in Europe are increasing the number of investors opting to store their wealth in Gold.
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