"Gold remained in a consolidation zone on Thursday as the market reacted to resilient US data and mounting geopolitical uncertainty. On the macro front, stronger-than-expected nonfarm payrolls reduced immediate fears of labour market deterioration, weighing on gold. However, markets still anticipate two rate cuts this year. Attention now shifts to upcoming inflation data, which could reshape expectations. A stronger-than-expected print may lift yields and pressure gold, while signs of cooling prices would reinforce dovish monetary policy expectations, supporting the metal."
"On the geopolitical side, the absence of a clear breakthrough between Washington and Iran has left markets uneasy. While US officials reiterated that diplomatic channels with Tehran remain open, no definitive framework has emerged. At the same time, Iranian limitations in talks underscored structural friction. In Eastern Europe, persistent hostilities continue to dampen confidence in near-term peace prospects, sustaining a geopolitical risk premium that underpins demand for gold. Despite near-term uncertainty, structural support remains firm as ongoing central bank accumulation continues to provide a steady outlook."
Gold remained in a consolidation zone as resilient US nonfarm payrolls reduced immediate fears of labour market deterioration and weighed on prices. Markets nonetheless expect two rate cuts this year, leaving monetary policy outlook sensitive to upcoming inflation data. A stronger-than-expected inflation print could lift yields and pressure gold, while signs of cooling prices would reinforce dovish expectations and support the metal. The absence of a clear breakthrough between Washington and Iran has left markets uneasy, with diplomatic channels open but no definitive framework and Iranian limitations underscoring structural friction. Persistent hostilities in Eastern Europe sustain a geopolitical risk premium, and ongoing central bank accumulation provides structural support.
Read at London Business News | Londonlovesbusiness.com
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