Gold prices edged higher on Friday, extending gains from previous sessions and hovering around the key psychological $3,000 level. Demand for the precious metal remains strong as traders continue to favour its safe-haven appeal. Donald Trump’s aggressive tariff stance is weighing on the economic outlook, denting growth forecasts and pressuring risk assets such as stocks, with major indices erasing post-election gains. Meanwhile, softer-than-expected US inflation data released earlier this week signals a growth slowdown for the world’s largest economy, fuelling expectations of further Fed rate cuts. With risk appetite fading and the so-called 'Trump Trade' unravelling, gold may have further upside. Next week’s FOMC meeting will be key in shaping expectations for Fed policy. This is likely to be a key driver for gold, given its inverted correlation with the US dollar.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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