Gold prices saw a modest uptick during the early hours of Thursday’s Asian trading session, influenced by a slight weakening of the U.S. dollar. As per the analysis by Commonwealth Bank of Australia (CBA) analyst Vivek Dhar, spot gold was trading at $1,876.63 per ounce.
Dhar highlighted the substantial impact of the U.S. dollar’s movements on the future direction of gold prices. Over the past year, there has been a growing inverse correlation between gold futures and the U.S. dollar. Essentially, when the USD weakens, gold prices tend to rise, and conversely, when the USD strengthens, gold prices often decline.
The minor increase in gold prices observed in the Asian session today aligns with this established pattern, reflecting the current environment of modest USD weakness. Analysts and investors are expected to continue monitoring this correlation closely as it provides insights into potential shifts in gold prices based on USD performance.
