|
By BasKooijmanis, CEO and Asset Manager of DHF Capital S.A
Gold steadied on Friday, positioning for a fourth consecutive weekly advance as investors maintained defensive exposure amid elevated geopolitical and trade uncertainty.
Persistent tensions in Eastern Europe continue to reinforce gold’s appeal. Meanwhile, negotiations between Washington and Tehran have shown tentative signs of progress, yet the diplomatic path remains fragile. Any setback could swiftly revive risk aversion and amplify demand for safe-haven assets. Markets are therefore closely monitoring developments that may recalibrate global sentiment.
Trade policy risks remain another pillar of support. The recent implementation of a new 10% global tariff regime by the US administration injects another layer of uncertainty, favouring the bullion.
However, monetary policy expectations could weigh on the gold market. Recent Federal Reserve commentary suggests that rate cuts are still dependent on further disinflation. Consequently, market participants will be closely monitoring today’s PPI data, as this could reshape expectations for monetary policy easing in 2026 and influence gold’s near-term trajectory.
|
