Gold prices edged lower as European trading got underway, but remain close to the weekly highs reached on Friday. The precious metal rebounded at the end of last week, gaining more than 2%, following the release of weaker-than-expected US labour market figures — including downward revisions to the May and June data. This surprise led to an immediate reassessment of interest rate expectations, with many analysts now seeing an increased likelihood of a rate cut by the Federal Reserve in September. The shift triggered a sharp decline in the US dollar against other major currencies, benefiting gold due to the inverse price correlation between the two assets. Also lending support to bullion was the latest escalation in the ongoing US tariff saga. As the Trump administration moved ahead with high levies on imports from several countries — including Brazil, India, and Canada — demand for gold rose, with investors seeking to hedge their portfolios against a potential deterioration in global economic conditions. Given the weakening economic outlook in the US and the persistent uncertainty surrounding trade policy, gold prices are likely to remain supported above the $3,300 level.
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.