"Gold extended its rally on Monday, decisively breaking above the USD 5,000 mark for the first time, as investors sought safe-haven protection amid a fresh wave of geopolitical and policy-driven uncertainty. In the US, Trump threatened 100% tariffs on Canada should it pursue a trade agreement with China, raising fears of another escalation in global trade tensions. In Eastern Europe, ongoing tensions between Russia and Ukraine, despite diplomatic talks, underline how fragile the situation remains, keeping geopolitical risk firmly priced into markets."
"Attention now turns to the upcoming Federal Reserve decision. Rates are expected to remain unchanged, leaving markets focused on guidance for 2026. A dovish outlook would likely propel gold even higher, while a more cautious tone might slow the rally. Even so, the broader outlook remains bullish, underpinned by persistent geopolitical stress, steady central bank buying, strong ETF inflows, and growing concerns over potential challenges to the Fed's independence."
Gold extended its rally, breaking above the USD 5,000 mark as investors sought safe-haven assets. US threats of 100% tariffs on Canada over China trade ties heightened fears of renewed global trade escalation. Ongoing tensions between Russia and Ukraine, along with unrest in Venezuela and the Middle East, kept geopolitical risk elevated. Markets focus on the upcoming Federal Reserve decision; rates are expected to remain unchanged and guidance for 2026 is key. A dovish Fed outlook would likely push gold higher while caution could temper the rally. The outlook remains broadly bullish due to geopolitical stress, steady central bank buying, strong ETF inflows, and concerns about Fed independence.
Read at London Business News | Londonlovesbusiness.com
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