2024 XAU/USD: Gold 1.8% Away From All-Time High as Inflation Recedes

The precious metal brings the shine back as it seeks to notch a second-straight week in the green.

Gold prices extended their gains early on Friday as traders kept buying up in the face of lowering inflation, falling dollar, and rising economic worries. Two days after the yellow metal climbed above $2,000, it got as high as $2,048 per troy ounce, or just around 1.8% away from its record. It is also poised to finish in the green for a second week in a row.

An adverse effect of the much-anticipated inflation cool-off is labor market contraction and overall economic belt-tightening. Against such a backdrop, gold can easily find its way higher on the menu of safe haven assets that investors prefer to hold until uncertainty clears up.

Now that price pressures have largely been eliminated as a threat to the economy, gold bugs are pricing in a Federal Reserve pause in the interest rate-driven quest to stamp out inflationary fires. In other words, another reason to reinforce gold’s positioning as a non-yielding asset.

Gold prices extended their gains early on Friday as traders kept buying up in the face of lowering inflation, falling dollar, and rising economic worries. Two days after the yellow metal climbed above $2,000, it got as high as $2,048 per troy ounce, or just around 1.8% away from its record. It is also poised to finish in the green for a second week in a row.

An adverse effect of the much-anticipated inflation cool-off is labor market contraction and overall economic belt-tightening. Against such a backdrop, gold can easily find its way higher on the menu of safe haven assets that investors prefer to hold until uncertainty clears up.

Now that price pressures have largely been eliminated as a threat to the economy, gold bugs are pricing in a Federal Reserve pause in the interest rate-driven quest to stamp out inflationary fires. In other words, another reason to reinforce gold’s positioning as a non-yielding asset.