Geopolitics Spike, Gold Stays Bid Near Highs
Gold stayed on an upward track in early European trading on Tuesday, hovering around US$4,465—just below the one-week high reached earlier. The price action suggests buyers are still active, especially as global markets remain highly sensitive to geopolitical headlines.
Support is coming from a mix of rising geopolitical risks. Tensions surrounding Venezuela after US military action, the worsening Saudi–UAE relationship, unrest in Iran, and the prolonged Russia–Ukraine war are all pushing investors toward defensive assets. In this environment, gold is once again being treated as a key safe haven.
On the macro side, sentiment also favors gold as markets continue to price in the possibility of two additional Fed rate cuts this year. Mixed US PMI readings have reinforced the view that the economy isn’t strong enough to justify a more aggressive tightening stance, leaving room for non-yielding assets like gold to climb.
A softer US dollar is adding further support. Concerns over the Fed’s independence under the Donald Trump administration have pulled the dollar back from a near four-week high. Attention now shifts to Friday’s US Nonfarm Payrolls (NFP) report, which could set the tone for the dollar and provide the next catalyst for gold’s move.
Source: Newsmaker.id
