The title states that the price of gold (XAU) against the US dollar (USD) has risen, despite two factors that usually cause gold to decline:
These factors are:
1. Statements from Jerome Powell (Chairman of the US Federal Reserve - Fed):
He stated that the bank is prepared to tighten monetary policy (which means it may raise interest rates or keep them high).
When interest rates are high, the dollar strengthens, and gold usually declines because it does not yield interest, unlike the dollar.
2. Strong US economic data:
For example, unemployment figures or economic growth were positive.
This supports the likelihood of keeping interest rates high, which strengthens the dollar and puts pressure on gold.
But the strange thing here:
Despite these factors, gold rose instead of falling!
Why?
Analyses point to possibilities such as:
Investors are fearful of the future, so they buy gold as a "safe haven."
The market expected tighter measures, and when the statements were less severe than expected, they considered it positive for gold.
A lack of confidence in the dollar in the long term, despite its temporary strength.
A clear summary:
> Gold has risen in price, despite all conditions suggesting it should decline. The reason is likely due to investor fear or their perception of upcoming weakness in the dollar.