Gold prices experienced a modest uptick during the early hours of Thursday’s Asian trading session, primarily attributed to a slight weakening of the U.S. dollar, as analyzed by Vivek Dhar, an analyst at the Commonwealth Bank of Australia (OTC:CMWAY) (CBA). The spot gold price was reported at $1,876.63 per ounce.
Dhar’s research note emphasized the critical role played by the U.S. dollar in determining the future direction of gold prices. He highlighted a notable inverse correlation that has evolved over the past year between gold futures and the U.S. dollar, indicating that when the USD exhibits weakness, gold prices tend to ascend, and conversely, when the dollar strengthens, gold prices often decline.
The marginal increase in gold prices during the current Asian session aligns with this observed trend, reflecting the prevailing state of mild weakness in the U.S. dollar. Analysts and investors are expected to closely monitor this correlation as they seek insights into potential fluctuations in gold prices based on the performance of the U.S. dollar.
