Gold
Gold prices extended their gains in early Friday trading, building on the momentum established at the beginning of the week, with the precious metal now up nearly 5%. This recovery was driven by traders seeking a hedge against inflationary pressures anticipated from the incoming Trump administration’s protectionist and expansionary policies. Such policies are widely perceived to fuel inflation, reinforcing gold’s role as a haven asset. The appeal of refuge assets intensified further following the escalation of the Ukraine-Russia conflict. Moscow retaliated against the use of Western-supplied weapons in strikes on its territory by launching a long-range missile into Ukraine. This heightened geopolitical tension has provided additional support to gold prices. Amidst these dynamics, gold remains highly sensitive to developments on the geopolitical front. However, further gains may face headwinds from rising US Treasury yields and a strengthening dollar, which could limit upward momentum.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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