Gold’s Calm After a Rough Tide
On Monday, gold prices stayed pretty much flat, even though the market did a few wild swings. After last week’s central‑bank round‑table, traders are now eyeing the upcoming inflation data from the US, the euro area, and the UK.
Why the Fed’s softer tone matters
- The Federal Reserve’s less hawkish stance could give the metal a lift.
- Lower Treasury yields make gold look more attractive and help keep its upward trend.
- Even though Fed officials downplay early rate cuts, markets are still pricing them in.
European and global vibes
- Ongoing tough economic conditions in Europe keep sentiment low, so investors keep chasing gold as a hedge.
- US GDP releases this week could shift expectations, with worries that high interest rates might choke economic growth.
- Middle‑East geopolitical tensions and the rising Red Sea risks are nudging investors toward safe havens, pushing central banks to pivot from a waning dollar toward gold.
What’s next for gold?
Gold may ride a strong uptrend over the medium‑to‑long term, but it can still retrace in the short term. The week’s average is hovering around $2,011, while the yearly average sits near the $1,900 mark—showing there’s still some downside risk on the horizon.
Stay in the loop
Get real‑time updates on this post’s category straight to your device. Subscribe now and never miss a beat.
