Gold prices edged higher in early European trading, hovering around the $3,220 level. The precious metal continues to find support amid ongoing uncertainty surrounding global tariffs. The latest development — with the US President hinting at a possible temporary reprieve from import levies, this time targeting the auto industry — has added a new layer of complexity to the situation. Ordinarily, such news might boost risk appetite and divert flows away from gold. However, in this case, it seems only to cap the upside, with bullion still attracting bids due to persistent concerns over the US-China trade conflict.
Meanwhile, expectations of interest rate cuts from the Federal Reserve are fuelling continued weakness in the US dollar. This, coupled with a retreat in Treasury yields following last week’s atypical market dynamics, is proving supportive for the non-yielding precious metal. Against this backdrop, the outlook for gold prices remains skewed to the upside, with traders now turning their attention to tomorrow’s release of US retail sales figures. The data may offer further insight into the health of the US economy and help shape market expectations regarding the future path of the Fed’s monetary policy.
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.