- On Friday, the price of gold shot up, bringing the week’s gains to over $100.
- Lower yields and worries about the banking system are making more people want gold.
- XAU/USD eye best week in years.
During the American sessions, the price of gold went up even more. It broke above $1,980. XAU/USD is at $1,982 as of late Friday. This is the highest level since April 2022, and it is on its way to the third-highest weekly close in history.
The yellow metal is 6.3% higher than it was a week ago. The sharp change in Treasury yields is what’s pushing up the price of gold. Bonds are doing better than they have in years. The outlook for monetary policy and the economy was hurt by the turmoil in the financial world.
The Federal Reserve will say what it has decided next week. Rates are likely to go up by 25 basis points. A few days ago, analysts were asking whether the US would hit 25 or 50 after inflation and job data came out. In the new scenario, there is a chance that there will be a break at the next meeting. Things have changed in a big way, which has pushed XAU/USD up in an impressive way.
It seems likely that the price of gold will be above $2,000 next week. Even when the price keeps going up, it makes sharp moves back down. Traders need to be extra careful in the current situation.
Technical levels
XAU/USD
Source: Team CurrencyVeda
