The main reason why gold prices increased sharply in today’s trading session is due to investors’ concerns about inflation. The European Central Bank (ECB) has just announced that the general inflation rate of the Euro area reached 10.7% in October, higher than the bank’s target of 2%. This caused the Euro to fall to its lowest level compared to the USD in the past 20 years.

In addition, geopolitical tensions between Russia and Ukraine continue to escalate, which is also a factor supporting gold prices. Gold is considered a safe haven asset during times of geopolitical instability.

However, the increase in gold prices may be limited by a stronger USD. The USD Index is at its highest level in the past 20 years. A strong greenback will make gold more expensive for investors holding other currencies.

In general, with the above supporting factors, world gold prices are forecast to continue their upward trend in the short term. However, gains may be limited by the strength of the USD.

The above comments hope to provide useful information for gold investors. Oriental Gold & Gemstone will continue to update global gold price developments to provide the most accurate forecasts. Please visit our website regularly to update the latest information about the gold market.