Gold’s Bumpy Ride: From Frenzy to Fret
Why the Bullion Took a Hiccup
Gold dipped on Tuesday, thrown off by the buzz that Russia and Ukraine might finally knock each other on the head and declare a do‑over. President Trump’s spark‑plug announcement of a worm‑hole negotiation window made investors grin and let go of their clutch on the shiny metal.
ETF Outflows: A Losing Grip
- 30 tonnes of gold went out of ETFs last week— the biggest drag since September 2022.
- When institutional players start walking away, the metal’s pedestal feels looser.
- That could keep gold’s momentum under a dampener for the time being.
The Fed’s Slow‑Moose Plays
Markets still expect at least two Fed rate cuts in 2025 thanks to the sluggish inflation and retail sales, but the policy chiefs recently went full hawk. Think of them as being careful with a lasso— it might not pull the net out quickly enough to give non‑yielding gold an upside boost.
Middle‑East Drama: A Backup Plan?
While the Gulf’s simmer holds, it could act as a safety net for gold— a quick “okay, let’s keep this safe again” for those looking for a haven.
What to Watch in the Coming Weeks
- Fed policy speeches: “Will the Fed be the birthday cake or the sober cousin?”
- U.S. econ releases and S&P’s preliminary PMIs.
- Real‑time progress on the Moscow‑Kyiv talks.
These headlines will be the kingpins of gold’s short‑term saga. Stay alert— gold’s story is still being written, and the plot twists could be wild.
