Markets Caution, Gold Strengthens as Focus Shifts to US Consumer Data
Global gold prices rose slightly in Friday afternoon trading, driven by a weakening US dollar and growing concerns about the direction of US President Donald Trump's trade policies. Spot gold (XAU/USD) briefly touched a daily high of around $3,350 per ounce, extending its rebound from a more than one-week low reached earlier.
The US dollar weakened after Federal Reserve Governor Christopher Waller delivered a dovish statement hinting at the possibility of an interest rate cut in the near future. This prompted investors to temporarily shift to safe-haven assets like gold. Meanwhile, uncertainty surrounding import tariffs and their impact on inflation also added pressure on the greenback.
However, gold's potential for strengthening remains limited. Market participants now expect the Fed to delay interest rate cuts, especially if inflation increases as a result of Trump's tariff policies. Furthermore, the optimistic mood in the stock market has also reduced gold's appeal as a safe-haven asset.
Despite the daily gain, gold remains on a moderate weekly decline—its first decline in three weeks. This condition reflects market uncertainty, which continues to weigh the fundamental strength of gold against fluctuating global macroeconomic factors.
Investors are now awaiting the release of US consumer sentiment data from the University of Michigan, due tonight. This data could provide new clues regarding the strength of domestic consumption and the future direction of monetary policy, which in turn will influence gold price movements in the near term.
Source: (ayu-newsmaker)
