Analyst: Expectations of Interest Rate Cuts and Safe-Haven Demand Drive Gold Prices Higher; Key Nonfarm Payroll Data to Watch This Week
Gold prices continued to rise on Tuesday, hitting a one-week high, buoyed by dovish comments from Federal Reserve officials that fueled expectations of interest rate cuts, as well as heightened safe-haven demand driven by tensions in Venezuela.Ilya Spivak, Global Macro Director at Tastylive, said, “Of course, [the Federal Reserve’s remarks] didn’t have a negative impact, but they don’t seem to have fundamentally changed the market’s assessment. This week is very critical, with the jobs report due out on Friday.” Federal Reserve Kashkari said on Monday that inflation is slowly coming down, but there is a risk of a “sudden spike” in the unemployment rate, which increases the likelihood of rate cuts. Investors currently expect at least two rate cuts this year. Spivak added: “The U.S.-Venezuela incident involving Maduro highlights a broader trend of deglobalization."In a low-interest-rate environment and during periods of geopolitical or economic uncertainty, non-yielding assets typically perform better."
Source:富途快讯 · Source Link
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