Gold prices recover after rare loss, supported by Trade and Geopolitical risks

Gold prices recover after rare loss, supported by Trade and Geopolitical risks

Gold prices regained momentum in early European trading after closing on Friday with a rare loss of about 1.5%. The precious metal appears poised to consolidate its position above $2,900, buoyed by its haven status as traders hedge their portfolios against the risk that US tariffs could trigger a multi-front trade war, thereby impairing the global economy. Also supporting bullion prices is ongoing geopolitical instability, further fueled by the recent apparent US desire to undermine the transatlantic alliance upon which Europe has long relied for security. Against this backdrop—and with a retreating US dollar, following the release on Friday of disappointing US retail sales figures—there is scope for further gains in the precious metal's price.

Ricardo Evangelista – Senior Analyst, 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.