Gold is trading marginally higher, holding firm above $5,180 per ounce and hovering near a four-week high as investors weigh geopolitical tensions, uncertainties surrounding US trade policies, and monetary policy expectations. The safe-haven appeal of gold is being supported by ongoing geopolitical risks, particularly between the US and Iran, while a weaker US Dollar provides additional tailwinds.
- Gold trades marginally higher above $5,150 as investors refrain from taking large positions ahead of US-Iran talks.
- The US and Iran will hold nuclear talks in Geneva, the outcome of which could impact risk perception.
- A weaker US Dollar, influenced by market optimism stemming from positive earnings reports and uncertainty over US trade policy, supports gold.
- US tariffs are expected to rise to 15% or higher for some countries.
- The Japanese Yen is rising following comments from Bank of Japan officials signaling potential rate hikes.
- Geopolitical risks between the US and Iran remain elevated, with the outcome of talks potentially influencing safe-haven demand.
- Dovish bets surrounding Federal Reserve interest rate cuts continue to support gold.
- US Jobless Claims data and Fedspeak are anticipated.
The confluence of factors suggests a mixed outlook for gold. Geopolitical instability and a weaker dollar create a supportive environment, bolstering its safe-haven status. However, potential shifts in monetary policy and the outcome of trade negotiations could introduce volatility. A disappointing outcome in US-Iran talks may further escalate demand for gold as a safe store of value.