Gold’s Bull Run Continues
After a +1% jump that hit the two‑week high, the precious metal’s momentum hasn’t slowed. Where did the surge come from? Let’s break it down.
US Economic Slow‑Down: Fed’s Spotlight
Thursday’s U.S. data came in softer than expected, raising the possibility that the Federal Reserve could trim rates soon. Traders are betting the Fed will ease a bit, and gold— the classic safe‑haven— is riding that wave.
Central Banks Set the Stage
- Bank of England (BoE) took a dovish stance, nudging August cuts closer.
- European Central Bank (ECB) trimmed borrowing costs earlier this month.
- Swiss National Bank (SNB) dropped rates for the second time in 2024.
All these moves poof‑shed a medium‑term wind that should keep gold buoyant.
Will Today’s PMI Decent?
If U.S. manufacturing or services PMI data under‑delivers, the rally could get a boost. That’s a good reason to keep an eye on the numbers.
Other Sparks for Gold’s Flame
Two key onward drivers:
- Geopolitical hot spots in the Middle East could shift risk‑off sentiment, loading buyers into gold.
- Upcoming elections across the developed world are likely to make investors nervous— another reason to turn to the glittering fallback.
And let’s not forget the steady inflow from central banks that keep those price tags rising.
What’s Next?
With potential rate cuts ahead, softer economic data, and geopolitical jitters, gold looks set to keep its glow. Stay tuned, because these factors might just keep the sparkle alive for a while.
