Gold prices are trading flat at the opening of the European session, hovering just above the $4,100 level. Following the losses of the last two sessions, which saw the precious metal drop by approximately 6%, prices have found support as traders refocus on the underlying fundamentals: the uncertainty generated by unresolved tariff-related disputes, unsettled geopolitical balances, and a prolonged US government shutdown — all of which continue to enhance gold’s safe-haven appeal. The recent sharp sell-off did not reflect any change in these conditions, but rather a natural correction driven by temporary optimism surrounding US–China trade negotiations and a modest US dollar resurgence, which prompted many traders to lock in profits by closing winning positions. Investors are now turning their attention to the release of US inflation data this Friday. Figures coming in higher than expected could create another headwind for bullion, while readings in line with or below expectations would reinforce the bearish outlook for the Federal Reserve, weigh on the US dollar, and provide upside potential for gold.
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.