By Bas Kooijman, CEO and Asset Manager of DHF Capital S.A
Gold edged higher on Tuesday, stabilising above the USD 4,300 level after the sharp profit-taking move seen in the previous session. Monday’s selloff came as investors locked in gains with prices trading at historical highs. Despite that correction, the broader outlook for bullion remains firmly constructive.
Geopolitical risks continue to provide a strong safety-haven underpinning. In Eastern Europe, tensions persist while a ceasefire remains elusive. In the Middle East, the situation remains fragile, with risks of escalation still present. Elsewhere, tensions between the United States and Venezuela have intensified, while frictions between China and Japan remain unresolved.
Beyond geopolitics, structural demand continues to support gold. Central banks have maintained steady purchases, and ETF flows remain consistently positive, signalling sustained institutional interest. From a macro perspective, expectations that the Federal Reserve could deliver two rate cuts in 2026, alongside speculation over the appointment of a more dovish Fed chair, potentially reviving concerns over central-bank independence, add further support to the precious metal’s bullish medium-term outlook.