Gold Shines Amid Economic Uncertainty and Rate Cut Hopes
Gold is expected to trade positively due to anticipated interest rate cuts by the Federal Reserve, increased trade volatility from the US, and growing safe-haven demand amid a falling dollar. Trade tensions and tariffs have also sparked a realignment in the global market, further bolstering gold's appeal.
- Country:
- India
Gold prices are likely to maintain a positive trading bias in the coming week. The potential for interest rate cuts by the Federal Reserve, coupled with market volatility stemming from the US administration's assertive trade policies, and increased safe-haven demand amid a weakening dollar, are primary contributors, analysts report.
European and UK PMI data and US jobless claims will be closely watched for signals on the Fed's interest rate trajectory. Additionally, market focus may pivot to the economic impacts of the US's trade restrictions on over 70 countries, which could lead to supply chain shifts and inflationary pressures, thereby increasing interest in gold.
The upcoming week may see stable yet positively biased gold prices, as the market evaluates the effects of US trade tariffs on the American economy and potential global trade disruptions. Investors are poised to manage volatility, taking cues from limited upcoming data releases and geopolitical developments.
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