Market fears of a global crisis are contributing to the rise of gold

Increasing inflation rates encourage traders to seek safe havens

By Raed Alkhedr | @raedalkhedr | 17 March 2023

Technical Analysis_Gold-20230309-153530
Gold prices increase
  • Economic tensions related to bank bankruptcies increase the demand for gold as a safe haven.

  • High inflation rates contribute to the rise of gold

  • Gold approaching the $2,000 mark

Uncertainty and economic tensions are pushing traders to buy safe havens

In the recent period, financial markets have experienced a state of uncertainty and instability, especially after news of the bankruptcy of three American banks, in addition to the economic problems facing Credit Suisse. This news has led traders to rush to the purchase of safe havens, especially gold, which has contributed to its rise to levels above $1,950, surpassing strong resistance levels around $1,900. It is likely to continue to rise if it succeeds in penetrating the $1,955 level, which may contribute to further rises to the $2,000 mark and then to the gold peak achieved in March of the previous year around the $2,070 level.

Increased inflation rates may push gold prices to rise further

High inflation rates and rising prices around the world may push gold to rise as a hedge against market risks. Technically, gold is currently facing a strong upward wave that may reach levels above $2,000. However, caution should be exercised if gold fails to surpass the $1,955 resistance level, as some correction may occur to the $1,914 level, which, if broken, may lead to a downturn to test the $1,880 level.

Gold - 1D