Gold Prices Face Uncertain Future Amid Economic Factors

According to BlockBeats, Pepperstone market strategist Ahmad Assiri has indicated that despite gold prices reaching new highs due to speculative flows and structural demand, the potential for further increases appears fragile. Assiri noted that central banks remain active buyers, and institutional portfolios are increasingly allocating more than the traditional 5% benchmark to gold. Given the weakening indicators in the U.S. job market, gold's role as a hedge and diversification tool is likely to remain strong. The possibility of a U.S. government shutdown could also drive investors towards gold and U.S. Treasury bonds. Although short-term fatigue in the gold market may occur, any profit-taking is expected to be quickly absorbed by demand.