"In my view, gold's ability to trade near a one-week high is not merely a temporary or technical move, but rather a reflection of deeper concerns and uncertainty dominating the global economic and geopolitical landscape-an environment that has historically been favourable for higher gold prices. I believe the current positive momentum in gold is primarily driven by escalating geopolitical risks on multiple fronts simultaneously, a factor markets cannot ignore."
"U.S. military threats toward Venezuela, warnings directed at several Latin American countries, open political tensions between Saudi Arabia and the UAE, and the ongoing Russia-Ukraine war with no clear resolution all contribute to sustained demand for safe-haven assets. In my opinion, when such crises accumulate at the same time, investors tend to reduce exposure to high-risk assets and seek value-preserving instruments, with gold remaining at the forefront of these choices."
Gold trading near $4,472 reflects a delicate balance between strong fundamental support and sensitivity to imminent economic data, notably the U.S. Non-Farm Payrolls report. Escalating geopolitical risks — including U.S. military threats toward Venezuela, warnings to Latin American countries, Saudi-UAE tensions, and the unresolved Russia-Ukraine war — bolster sustained demand for safe-haven assets. Accumulating crises push investors away from high-risk assets toward value-preserving instruments, keeping gold prominent. Market expectations of a dovish Federal Reserve with potential rate cuts reduce pressure on non-yielding gold. Recent U.S. dollar weakness further reinforces the positive momentum in gold prices.
Read at London Business News | Londonlovesbusiness.com
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