Gold's YTD Returns Surged to 38%in the Most Recent Week

SEATTLE (Scrap Monster): Gold prices surged to a new high, confirming resumption of its core long-term uptrend.

The prices of the yellow metal recorded increase for the third consecutive week, after confirming a triangle continuation pattern. The initial support is now seen at $3,512 per ounce.

The LBMA Gold Price PM witnessed a notable weekly increase of 4.8% to close last Friday at $3,595 per ounce. Incidentally, gold’s year-to-date returns increased further during the week to 38%, said the most recent edition of the Weekly Markets Monitor report published by the World Gold Council (WGC).

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The U.S. data released last week pointed to a softening labor market, thus reinstating the hopes for a possible rate cut by the U.S. Fed. The business sentiments saw notable improvement in the Eurozone region, with inflation remaining firm. In the Asian region, India’s tax cuts, China’s slowdown in export trade and the resignation of the Japanese Prime Minister were in highlight.

All eyes are now on the Fed’s rate decision on 18 September and the August inflation data, which is due to be released this Thursday. The political uncertainties prevailing in Japan and France are likely to push up the safe-haven demand for gold in the weeks ahead.