Gold prices rose above $3,650, hitting a new all-time high in early Tuesday trading. The precious metal extended an impressive rally that began on Friday, after disappointing US labour data increased bets on Fed rate cuts later this month. The loss of momentum in the US labour market is seen as a sign of economic slowdown, and this perception could deepen later today with the release of revised labour figures. If these follow the recent trend of downward revisions, dovish expectations for Fed policy may intensify, driving further dollar weakness and lower yields, and potentially creating scope for additional gains in gold. Against this backdrop — and with lingering global trade uncertainty, geopolitical turbulence, and fears of political interference in the Fed fuelling safe-haven demand — the outlook for gold remains positive, with further upside possible.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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