"Gold traded broadly stable near the USD 5,000 mark on Friday as investors weighed escalating geopolitical risks against upcoming signals around US monetary policy. Tensions between Washington and Tehran intensified after President Donald Trump set a 10-15-day deadline for progress on nuclear negotiations, raising the possibility of renewed confrontation. In Eastern Europe, continued tensions and stalled diplomatic efforts have reinforced a sense of strategic deadlock."
"This fragile global backdrop supports gold's demand, alongside ongoing central bank accumulation. Despite this supportive environment, price action could remain contained ahead of the US PCE inflation release. Should the PCE confirm the recent easing trend in inflation, expectations of a more accommodative stance could strengthen, potentially allowing gold to challenge the upper end of its consolidation range. Conversely, sticky inflation, combined with resilient labour market data and the Fed's cautious tone in recent minutes, could temper rate-cut expectations and limit gold's upside."
Gold traded broadly stable near USD 5,000 as investors weighed escalating geopolitical risks against forthcoming US monetary policy signals. Tensions between Washington and Tehran rose after President Donald Trump set a 10-15-day deadline for progress on nuclear negotiations, increasing the chance of renewed confrontation. Ongoing tensions and stalled diplomacy in Eastern Europe reinforced a sense of strategic deadlock. The fragile global backdrop, together with continued central bank accumulation, supported demand for gold. Price action could remain contained ahead of the US PCE inflation release, with easing PCE data potentially strengthening accommodative expectations and allowing gold to test the upper consolidation range. Conversely, sticky inflation, resilient labour market data, and a cautious Fed could limit gold's upside. Physical demand in Asia is seasonally subdued for Lunar New Year, though returning liquidity may reintroduce volatility.
Read at London Business News | Londonlovesbusiness.com
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