Gold prices rose in early Tuesday trading, reflecting continued US dollar weakness and heightened safe-haven demand. Concerns over the US fiscal outlook and lingering tariff-related uncertainty—as the 9 July deadline approaches—are fuelling investor caution. Growing bets on a near-term Federal Reserve rate cut are weighing on the greenback, which has touched its lowest level since February 2022. This dynamic supports gold, given the inverse price correlation between the two assets. Against this backdrop, there is scope for further gains, with prices likely to attract additional buying interest as they revisit the $3,350 level. However, the upside may remain limited for now, as risk appetite stays elevated, with US equity indices reaching fresh all-time highs.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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