Gold edges to a six-week high amid rising global risk aversion

Market Overview

Gold prices settled slightly lower after touching a six-week high on Monday. The move was driven by widespread risk aversion across markets, as investors turned toward safe-haven assets amid mounting global uncertainty.

Key Drivers

According to analysts, growing tensions in major economies and concerns about persistent inflation have reinforced demand for gold. The weakening U.S. dollar and declining Treasury yields further supported the metal’s upward momentum.

“Investors are moving away from riskier assets and seeking safety in gold as global market sentiment turns cautious,” said a market strategist quoted in the report.

Spot gold traded around its highest level since mid-October before stabilizing later in the session.

Market Outlook

Market participants are now watching upcoming U.S. economic data and Federal Reserve communications for clues on the direction of monetary policy. Any indication of slower rate hikes could add fuel to gold’s rally in the near term.

Summary

Prices remain sensitive to macroeconomic signals, with gold well-positioned as a preferred hedge in volatile trading conditions.

Author’s note: Gold continues to benefit from the shift toward risk aversion, standing strong as a safe asset amid unstable global markets.

more

Reuters on MSN Reuters on MSN — 2025-12-01

More News