Gold prices remain close to the all-time highs reached in the previous session, supported by a combination of factors. These include concerns that the independence of the Federal Reserve could be compromised following what is widely seen as a politically motivated targeting of its Chair, amid unclear threats of criminal indictment related to alleged corruption. Such developments risk undermining investor confidence in US assets. Further support for the precious metal comes from increasingly dovish expectations for the Federal Reserve’s interest rate path, driven by signs of a slowing economy, political pressure to lower rates, and the prospect of a White House-aligned Chair being appointed in May. Finally, with geopolitical tensions remaining elevated, and the latest flare-up involving Iran generating fresh concerns, gold’s safe-haven appeal continues to strengthen. Against this backdrop, there remains scope for further upside in gold prices, although near-term gains may be tempered by investors’ caution ahead of the release of key US economic data, including inflation and retail sales figures, as well as by recent hawkish remarks from senior Fed officials.
Ricardo Evangelista, ActivTrades
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.