March 10, 2023 (MLN): Gold prices have seen an increase in early Asian trade amid a flight to safety and rumors that China-based traders are buying gold for U.S. dollar diversification purposes.
Stephen Innes, the managing partner for SPI Asset Management, suggested that the recent downshift of gold prices to the low 1800s has provided a buying opportunity for many, but renewed inflation concerns and a more hawkish Federal Reserve may not have run their course.
As a result, the next dollar direction will drive gold sentiment.
Spot gold has seen a 0.3% increase and is currently priced at $1,834.01 per ounce.
With concerns over inflation and the potential for a more hawkish Federal Reserve, many investors may see gold as a safe-haven asset during times of economic uncertainty.
Additionally, China-based traders seeking to diversify away from the U.S. dollar may also be contributing to the rise in gold prices.
As the market continues to react to the ongoing economic situation, the price of gold may see further fluctuations.
However, for now, the rise in gold prices serves as a reminder of the metal's value as a potential safe-haven asset during times of market volatility.
