Gold Set for Fourth-Weekly Gain, Safe Havens Remain Sought
Gold prices strengthened and held around $5,190 per ounce on Friday (February 27th), extending a two-day winning streak and on track for a fourth consecutive weekly gain. The market weighed the combination of uncertainty over US trade policy and persistent geopolitical risks, which kept demand for safe-haven assets solid.
On the trade front, new 10% global tariffs introduced by President Donald Trump's administration took effect this week. The market is also monitoring a potential increase to 15% for a number of countries, after a Supreme Court ruling limited some of the broader tariff scheme. This swift policy shift kept market participants on the defensive and supported gold.
On the geopolitical front, Washington and Tehran are scheduled to resume nuclear negotiations next week after mediators reported progress in talks on Thursday. Although diplomatic channels are open, US sources said the American delegation left the meeting disappointed, leading the market to believe the risk of a stalemate has not yet been completely eliminated.
Meanwhile, the focus on monetary policy remains on the market. Market participants are closely monitoring the Fed's signals: Chicago Fed President Austan Goolsbee has opened the door to a rate cut if inflation falls, while Fed Governor Stephen Miran has again pushed for a total rate cut of 1 percentage point by 2026.
However, the money market appears increasingly less dovish: the chance of a June rate cut has dropped to around 50%, and expectations of a "third" rate cut by the end of the year have almost faded—factors that could potentially limit gold's gains, despite its still-positive weekly trend.
Source: Newsmaker.id
