Gold prices are broadly flat as European trading gets underway, with the precious metal sitting just above $4,700. Since its sharp decline in mid-March, the average price of gold has remained close to current levels, suggesting a period of consolidation driven by opposing market forces. On one hand, ongoing geopolitical and economic uncertainty continues to support demand for gold as a safe-haven asset. On the other, the war between the US and Iran has pushed energy costs higher, adding to inflationary pressures and shifting expectations regarding central banks’ monetary policy. Investors now expect the Federal Reserve and other major central banks to keep interest rates higher for longer, limiting the upside potential for non-yielding assets such as gold. Against this backdrop, gold traders are likely to remain highly attentive to developments in the Persian Gulf, as well as to upcoming economic data releases. Donald Trump’s visit to China will also remain firmly on investors’ radar. Positive developments on the trade front could help ease inflationary pressures and provide further support for gold prices.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Forecasts are not guarantees. Rates may change. Political risk is unpredictable. Central bank actions may vary. Platforms’ tools do not guarantee success.