Gold prices touched a new all-time high in early Friday trading before retreating to levels just above $4,900. Despite a degree of short-term relief in geopolitical tensions, following the US president’s step back from the brink of a trade war with Europe over Greenland and the dismissal of the possibility of using force, the global geopolitical backdrop remains turbulent and unpredictable. The war in Ukraine, the risk of a large-scale US strike on Iran, and increasingly visible cracks in the traditional Western alliance continue to enhance gold’s safe-haven appeal. At the same time, the US dollar remains on a downward trajectory against other major currencies, a dynamic that provides additional support for the precious metal. Market expectations for the Federal Reserve’s monetary policy are becoming increasingly dovish, as political pressure from the White House appears to outweigh economic data. Figures released yesterday showed Q3 GDP growth at 4.4%, beating expectations, while the latest inflation reading rose to 2.8%. Nevertheless, dovish Fed expectations continue to weigh on the dollar, adding further momentum to gold and creating scope for additional price gains.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Forecasts are not guarantees. Rates may change. Political risk is unpredictable. Central bank actions may vary. Platforms’ tools do not guarantee success.