Gold prices are flat in early Monday trading, hovering near the all-time high reached last week and consolidating support around the $3,640 level. The outlook for the precious metal remains positive, with markets expecting the Federal Reserve to respond to recent signs of a slowdown in the US labour market by announcing a 25bp rate cut, and perhaps open the door to further cuts, at Wednesday’s meeting. Such moves would weigh on the dollar and support gold, given the inverse correlation between the two assets. Inflation also remains far from under control — as shown by last week’s uptick in consumer prices — and bullion continues to benefit from its role as a hedge against rising prices. Added to this are ongoing geopolitical tensions, tariff-related uncertainty, and fears that political interference could undermine the Fed’s independence. Together, these factors strengthen gold’s safe-haven appeal, creating scope for further price gains and potentially a fifth consecutive week of advances.
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.