Home Business News Gold prices fluctuate amid economic and political uncertainty

Gold prices fluctuate amid economic and political uncertainty

28th Jun 24 8:33 am

Gold prices have edged higher, supported by a moderating US dollar as markets brace for key economic data releases in the final two days of the week.

The Federal Reserve’s stance on maintaining high interest rates for an extended period has kept US Treasury bond yields elevated and the US dollar strong which weighed on gold during the last few weeks.

Despite the Fed’s indication of only one rate cut in 2024, markets continue to see a start in cuts as early as September followed by another in December. If cuts materialize gold could find more support. However, the uncertainty could continue to fuel some volatility.

Traders could remain cautious due to the upcoming US presidential debate on Thursday and the release of the US Personal Consumption Expenditures (PCE) Price Index on Friday. Additionally, today’s estimates of the US first-quarter gross domestic product may impact market sentiment.

At the same time, persistent geopolitical tensions and political uncertainties continue to support gold’s status as a safe-haven asset. Upcoming elections in France, the UK, and the US are likely to fuel risk aversion, potentially benefiting gold prices.

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