March 24, 2023 (MLN): Gold prices remained relatively steady in early Asian trade on Friday, after settling at a more than-year-high overnight. This rise in prices is attributed to a decline in U.S. Treasury yields and a weakening of the dollar.
Analysts are of the view that the precious metal may continue to rise over the medium term, especially if financial turmoil resurfaces and threatens to create systemic risks.
Contributing strategist for DailyFX, Diego Colman, noted that gold's upward trajectory could continue due to global economic uncertainty. He believes that if financial turmoil re-emerges, gold could provide a safe haven for investors seeking to hedge against risk.
Oanda's senior market analyst, Craig Erlam, also stated that gold is beginning to shine once more, citing risk-aversion on the back of recent comments by Treasury Secretary Janet Yellen.
Yellen said that the government is not considering blanket insurance for bank deposits, which could lead investors to seek alternative safe-haven assets like gold.
As of early Asian trade, spot gold is currently flat at $1,992.30/oz. Analysts will continue to monitor global economic and political developments for potential impacts on gold prices in the coming days and weeks.
