Gold traded above $3,650 as the European session got underway on Friday, remaining close to the all-time high reached on Tuesday and on course for a fourth consecutive week of gains. US inflation figures released in the previous session showed a modest uptick compared with the prior month, but this was not enough to halt the dollar weakness triggered by disappointing labour market data. The soft employment numbers have fuelled bets on aggressive Fed rate cuts, driving US dollar losses and pushing Treasury yields lower — a dynamic that benefits the non-yielding precious metal. Against this backdrop, political instability in France and Japan, the ongoing wars in the Middle East and Ukraine, tariff-related economic uncertainty, and concerns that political interference could undermine the Federal Reserve’s independence are all adding to gold’s safe-haven appeal and creating scope for further gains.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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