Gold is experiencing a rebound, driven by trade and geopolitical tensions, alongside a weakening US dollar. However, gains are limited by fading expectations of immediate Federal Reserve rate cuts. Market participants are closely monitoring US-Iran nuclear talks and upcoming speeches from Fed officials.
- Gold rose to around $5,180 per ounce, recovering from previous losses.
- US President Trump’s new 10% global tariff came into effect, with potential increases to 15%.
- Trump warned of higher tariffs on countries “playing games” with trade agreements.
- US-Iran nuclear talks are ongoing, with Iran seeking a deal with Washington.
- Two Fed officials see no immediate need for rate cuts due to improving labor market and persistent inflation.
- Gold buyers are eyeing $5,200, supported by a weaker US Dollar and easing AI worries.
- Trump’s SOTU address kept the USD under pressure, benefiting Gold.
- Geopolitical tensions and US-Iran nuclear talks continue to support Gold demand.
This suggests a complex interplay of factors is currently influencing the price of gold. Trade tensions, geopolitical events, and a weaker dollar are providing upward pressure, while the prospect of stable interest rates from the Federal Reserve is acting as a counterweight. Overall, the market sentiment seems cautious, with investors balancing potential risks and opportunities.