Gold (XAU) Price Forecast: Safe-Haven Demand Surges on Trade War and Inflation Fears

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Gold came strong on the back of these developments, hit a record of $ 3,086.97 and achieved his fourth consecutive weekly profit. The inflation -cover story is reserved again as the real yields remain low and the macro -uncertainty increases.

Fed Stance offers little lighting for bears

The Federal Reserve kept rates stable and signaled a Dovish-Tilt, with futures prices in 63 basic points of cuts by the end of the year. Policy makers, including Governor Adriana Kugler and Thomas Barkin of Richmond Fed, noticed that the progress of inflation and the view of policy use recorded. Traders remain focused on the next step of the FED, but the hotter than expected PCE data will probably delay immediate action, so that real yields are compressed-a bullish background for precious metal.

Geopolitics and recession risk deepen the attraction

Markets also respond to geopolitical uncertainty and growing recession expectations. A CNBC CFO Council survey shows that 60% of American CFOs now expect a recession towards the end of the year, an increase of only 7% last quarter. Trade stresses are at the top of their concerns, followed by inflation and decreasing requirements. Own power appetite fades, with only 35% of the CFOS planning increased Capex, to strengthen the role of Gold as a defensively active.

Gold prices forecast: the basic principles indicate the continuous demand for safe haven

With tariff -controlled inflation concerns building, fears the recession and the Fed that maintains a cautious attitude, the fundamental prospects for gold remains supportive. Geopolitric risk, weak business sentiment and policy uncertainty continue to stimulate the demand for safe haven. Unless Macro circumstances improve equipment, the fundamental case for gold remains strong the following week.

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