Gold prices set to end the week on a positive note, rising over 2.79% amidst trade uncertainty

Gold prices have surged dramatically, closing the week up 2.79%, marking a notable rally of $90 due to the weakening of the US dollar, thereby attracting safe-haven investments. As of now, XAU/USD is trading at $3,326. This increase comes as European and US markets remain quiet for the Easter weekend. Mary Daly, the President of the San Francisco Federal Reserve, expressed optimism regarding the economy but noted some sectors are experiencing a slowdown. The hawkish stance from Fed Chair Jerome Powell earlier in the week had contributed to a slight corrective move in gold prices after touching an all-time high of $3,358. Additionally, rising yields in the U.S., with the 10-year T-note yield reaching 4.333%, and real yields further climbing indicate potential headwinds for gold in the near future. The upcoming week looks busy with essential economic reports on Fed speeches and consumer sentiment metrics due to be released, which could further influence gold's trajectory. Despite recent pullbacks below $3,330, gold's uptrend remains intact, signaling strong underlying demand and speculation about future rallies targeting $3,400. Analysts have noted the significance of global trade uncertainties, particularly surrounding U.S.-China relations and tariffs, which may continue to elevate gold's appeal as a safe-haven asset, even as investors remain cautious. The apparent shift towards gold isn't solely due to its historical status as a safe-haven, but also indications of long-term investments, reflected in striking sales trends from jewelry collectors seeking to capitalize on current high prices. Gold has established itself as a hedge against inflation and market fluctuations, a sentiment echoed by many consumers now looking to liquidate family heirlooms and old jewelry to tap into this lucrative market. However, independent jewelers have raised concerns regarding inflated wholesale prices, calling for careful consideration before melting down potentially valuable antiques or heirloom pieces. With significant volatility in the market, a potential correction is not off the table, making the scenario complex for both investors and collectors. Current trends suggest that as long as geopolitical tensions persist, gold will likely continue receiving strong support. Attention will now shift toward economic indicators that could sway investor confidence.