Gold prices are slightly lower this morning, but the pullback is modest and the metal continues to hold on to gains accumulated over the past four sessions. The mild decline appears to reflect improved risk appetite, with equity markets broadly higher. Despite today’s pause, the underlying tone in the gold market remains bullish. Recent disappointing US data has revived expectations of a Federal Reserve rate cut in September, which has weighed on the dollar and offered renewed support to bullion — thanks to the inverse correlation between the two assets. Adding to the pressure on the greenback is mounting speculation around the US administration’s potential nominees for the Fed. This has triggered concerns over the central bank’s future independence, further denting dollar sentiment and creating room for gold to advance. In parallel, safe-haven demand remains strong as investors seek protection from the trade-related uncertainty stemming from the latest round of US tariff threats. Against this backdrop, there may be further upside for gold, with a near-term target around the $3,400 level.
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.