In light of year-end trading, gold bulls continue to aim for $1,825
Gold price is extending the previous week’s uptrend, as holiday-thinned light trading offers buyers conducive conditions. The main catalyst, however, behind the gold price advance is China’s further Covid reopening-led risk-on sentiment.
The market optimism is weighing negatively on the safe-haven US Dollar, which makes the USD-priced bullion more expense for foreign buyers. The US S&P 500 futures are up over 0.50% on the day, representing the upbeat market mood. Looking ahead, the risk trends and the US Dollar price action will continue influencing the bright metal amid thin liquidity and absence of high-tier US economic data.
Gold price fluctuated wildly throughout the week as investors assessed the US inflation report, the Fed’s policy outlook and its potential impact on the global economy. Next week’s economic calendar will not be offering any high-impact data releases and thinning trading conditions into the holiday season could make it difficult for the precious metal to make a decisive move in either direction.