Gold prices reached a new record high in early Wednesday trading, approaching the $4,650 level. So far this year, the precious metal has gained more than 7%, supported by dovish Federal Reserve expectations and rising geopolitical tensions. Concerns over potential political interference undermining the Fed’s independence have also added to upward momentum. The latest gains follow Tuesday’s release of US inflation data, which came in below expectations and reinforced expectations of rate cuts, with a growing number of traders now pricing in as many as three cuts in 2026. Such a scenario weighs on the US dollar, supporting gold due to the inverse correlation between the two assets. Meanwhile, geopolitical risks remain elevated, with the latest flare-up in Iran generating fresh concerns and further enhancing the precious metal’s safe-haven appeal. This demand is also underpinned by perceived risks to the Federal Reserve’s independence as political pressure from the White House continues to build. Against this backdrop, the outlook for gold prices remains tilted to the upside.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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