Gold Edges Higher Amid Safe Haven Demand, Eyes Record Levels

NEW YORK (December 19) Gold has finally stirred this afternoon after a quiet start to the European session. Spot gold was trading at $4,345 an ounce by 16:00 GMT, holding within its weekly range and on track for a positive week.

The yellow metal remains near record highs, buoyed by strong safe haven demand. Yesterday, gold made a failed attempt at all-time highs before retreating, showing sellers are still present at key levels.

Investors were encouraged by softer-than-expected US inflation data for November, raising hopes that the Federal Reserve could ease interest rates further.

Analysts, however, caution that November’s reading may have been skewed by the extended government shutdown in October and early November. They expect December’s CPI report to offer a clearer picture of US inflation and future rate moves.

Concerns over the US economy have also lifted haven demand this week, following an unexpected rise in unemployment that has sparked fears of stagflation.

Looking ahead, the broader outlook for gold is positive. Central bank purchases and ongoing ETF inflows continue to support prices. Technically, gold remains bullish, but buyers will need extra strength to break through the all-time highs set in October.

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