Gold prices edged higher in early European trading, recovering enough to erase the previous session's losses. The precious metal finds itself caught between opposing forces: ongoing geopolitical turbulence continues to provide support, while the prospect of the incoming US administration adopting a protectionist stance, potentially driving higher inflation and forcing the central bank to maintain elevated interest rates, threatens to strengthen Treasury yields, creating a headwind for gold. Amid this dynamic, recent media reports suggesting that the President-elect plans to limit tariffs to strategically significant imports have offered some relief, lending temporary support to gold prices. However, the metal's upside remains constrained by these conflicting pressures, and any significant developments on this front are likely to influence sentiment among gold traders.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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