GOLD
Gold prices neared all-time highs before pulling back in early Tuesday trading, driven primarily by haven demand amid rising concerns over a potential all-out war between Israel and Iran. Media reports continue to suggest a high likelihood of an Iranian strike on Israel in retaliation for the recent assassination of Tehran's allies.
Such a move could spark an open conflict with unpredictable geopolitical and economic consequences for the region and beyond, leading to increased demand for refuge assets like gold. Meanwhile, traders will closely monitor the release of US inflation data today and tomorrow.
A confirmation of slowing price increases would give the Federal Reserve more room to cut interest rates, likely resulting in lower treasury yields and a softer dollar, favouring gold prices. Conversely, disappointing news on the inflation front could introduce downside risks for the precious metal.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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