Global Stability Shakes, Safe Havens Are Back in Demand
US President Donald Trump previously threatened to impose tariffs on the European Union, which pushed gold prices up as a safe haven asset. However, Trump's decision to postpone the tariffs has eased trade tensions, causing gold prices to come under pressure.
On the other hand, market concerns about the US fiscal deficit and potential credit rating downgrades have increased demand for gold, and the recent weakening of the US dollar has provided additional support for gold prices.
For now, market players are still waiting for the speech of the Fed officials for directions on interest rates. If the Fed gives a dovish signal or maintains interest rates for longer, gold has the potential to strengthen further.
Despite short-term pressure due to easing trade tensions, fundamental factors such as US fiscal concerns and the potential for dovish policies from the Fed support the bullish outlook for gold. If the price is able to break through resistance at $3,357, there is potential to go to the $3,400 level in the near future.
Source: (mrv@Newsmaker)
