Gold prices edged up in early Tuesday trading after gaining more than 2% in the previous session. The precious metal continues to be supported by increasingly dovish expectations for the Federal Reserve following the release of weak US manufacturing PMI data, which has reinforced concerns that the world’s largest economy may be slowing and has fuelled expectations of interest-rate cuts. Safe-haven demand has also picked up in the wake of weekend events in Venezuela and subsequent remarks from President Trump, which appeared to raise the prospect of similar military action in other countries of the region. Against this backdrop, it is not surprising to see gold prices pushing higher, with scope for further gains. That said, traders are likely to remain cautious about building large long positions ahead of Friday’s US labour market data, which is shaping up to be a key event for expectations around the Fed’s policy path.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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