The weakening US dollar, concern about rising inflation, and the potential for low interest rates in the long term pushed gold prices to rise.
Gold prices are still continuing the rally that formed from November 04.
In early Tuesday (09/November) trading, XAU/USD was up 0.44% to $1,824.77, its highest level since mid-September.
As for the weakening of the US dollar, the central bank's concern about rising inflation, and the potential for low interest rates in the long term, are still the main factors supporting gold prices this time.
Spot gold prices rose for three consecutive trading sessions. At 17:40 GMT, spot gold was up half a percent at $1,825.64 an ounce. Meanwhile on the Comex in New York, gold futures prices also rose 0.6% to $1,828.
The US dollar slipping again perpetuates gold's bullishness today.
Investors are still watching the development of economic data, especially the US economy, which this week will release consumer inflation data.
They also weighed it with the Fed's monetary policy statement last week.
"Inflation data has to be well above expectations if we are to get a surprise back leading to the fear of higher interest rates. However, if the inflation figure is recorded as being or only slightly above expectations, then I don't think anyone will panic too much." said Kyle Rodda, expert at IG Markets.
In general, currently central banks are still implementing accommodative policies.
According to the observations of Jim Wyckoff of Kitco Metal, cash flows in the financial system are rushing into the gold and silver market, known as hedge assets, amid rising inflation.
In addition to the Fed's policy, the Bank of England's policy last week also influenced the increase in gold prices.
It was widely expected that interest rates would increase, the British central bank actually held off on raising interest rates.
Following the announcement, the bullion price jumped up to 2%.
Technically, Rodda said a break above the $1,830 level could potentially push gold even higher to $1,900.
However, in the long term, the trend of gold prices is quite low, considering that central banks may increase monetary tightening to offset rising inflation.
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