“The recent gold rally seems fueled by a mix of [fear of missing out] and safe-haven demand amid ongoing global uncertainties and a weakening dollar,” said Naeem Aslam, chief investment officer at Zaye Capital Markets.
There are concerns, however, that gold is “becoming frothy,” he told MarketWatch. “While momentum remains with the bulls, this sharp rise feels sentiment-driven, and any hawkish shift from the [Federal Reserve] or profit-taking could trigger a correction.”
The higher gold climbs without a pullback, “the more fragile it becomes, so cautious optimism is warranted as overbought conditions could quickly turn into a reversal,” said Aslam.
On Comex, gold for December delivery climbed $26, or 1%, to $2,733.50 an ounce after trading as high as $2,733.90. Based on the most-active contract, Friday’s intraday level tops the previous record-high from Thursday and prices are poised to mark a fresh all-time settlement high.