Gold experienced slight selling pressure, dipping below $5,050 per ounce but remained near recent highs. Investors are awaiting key US economic data, including the Nonfarm Payrolls report and inflation figures, which are expected to influence the Federal Reserve’s rate path. Market expectations for rate cuts and continued official-sector demand from China support bullion, while geopolitical tensions provide safe-haven demand.
- Gold faces some selling pressure but remains above $5,000.
- The pullback is attributed to a rebound in the US Dollar.
- Declining US Treasury yields are limiting the downside for Gold.
- Markets are pricing in at least two Fed rate cuts in 2026.
- US Nonfarm Payrolls (NFP) report and inflation figures are closely watched.
- US and Iran talks ease concerns about military confrontation in the Middle East.
- Concerns about the Fed’s independence resurfaced after Trump comments.
- China’s central bank continued gold purchases for the 15th straight month.
The overall picture suggests a complex environment for the asset. While a stronger dollar and eased geopolitical tensions may create temporary downward pressure, expectations of monetary easing and ongoing demand from central banks provide a foundation for support. Upcoming economic data releases in the US will be crucial in determining short-term price action and influencing investor sentiment.