Gold prices edged up in early Thursday trading, hovering near weekly highs as the European session got underway. The gains were driven by renewed concerns over the economic impact of the US administration’s trade policies, boosting the appeal of gold as a haven asset. Expectations that the Federal Reserve will resume interest rate cuts in early summer, coupled with the US dollar’s retreat from a multi-week high, provided additional support for the precious metal. However, the upside remains capped for now as Beijing’s commitment to introducing growth-driven stimulus fuels greater risk appetite, while an uptick in US Treasury yields weighs on non-yielding gold. Against this backdrop, bullion prices are likely to remain rangebound, supported above the key psychological level of $3,000, with resistance around the all-time highs reached last week. Traders are already turning their attention to tomorrow’s release of US PCE data, the Fed’s preferred inflation gauge, which has the potential to influence expectations around the central bank’s monetary policy and impact gold prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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