Gold is trending upwards, nearing record highs and achieving a fourth consecutive week of gains, spurred by anticipation of relaxed US monetary policy and ongoing geopolitical instability. Recent US economic data reveals steady inflation, a dip in producer prices, and rising jobless claims, reinforcing expectations of an upcoming Federal Reserve rate cut. Safe-haven demand further fuels gold’s rise amid escalating global tensions.
- Gold climbed to around $3,650 per ounce.
- It is on track for a fourth consecutive weekly gain.
- Expectations of looser US monetary policy are firm.
- US data showed steady annual inflation and a drop in producer prices.
- Jobless claims climbed to a four-year high, indicating labor market weakness.
- Markets have priced in a 25bps rate cut at the Fed’s next meeting.
- There’s growing speculation about a potentially larger rate cut.
- Geopolitical uncertainties are providing safe-haven support.
- The US is reportedly pushing G7 allies to impose higher tariffs on India and China.
- Conflict in the Middle East has intensified.
- Poland announced it intercepted Russian drones.
The current confluence of economic indicators and geopolitical events is highly favorable for gold. The expectation of lower interest rates reduces the opportunity cost of holding gold, while uncertainty and instability drive investors towards this traditional safe-haven asset. This creates a supportive environment for continued price appreciation.