Today market analysis on behalf of Fadi Al Kurdi founder CEO FFA Kings
Gold prices could remain under some pressure amid higher yields and a firm US dollar. The constant uncertainty over the geopolitical situation in the Middle East and the resulting elevated oil prices could continue to support the dollar and Treasury yields, weighing on non-yielding assets like gold. After President Donald Trump announced a pause to a planned military action, markets could remain cautious amid the risks of re-escalation, in particular if diplomatic efforts continue to stall.
Elevated energy prices and ongoing inflation concerns could continue to reinforce expectations that the Federal Reserve may need to move toward a more restrictive stance. Forecasts are increasingly leaning toward the possibility of tighter policy next year, a backdrop that continues to limit gold’s appeal. The policy outlook has gained additional attention with Kevin Warsh nominated to head the Federal Reserve, as market participants assess how the central bank may navigate a more inflationary environment under his leadership.
Meanwhile, ETF flows have remained subdued in recent weeks, reflecting investors’ lack of conviction, which could exacerbate downside risks if geopolitical conditions deteriorate. Looking ahead, markets will closely monitor geopolitical developments and upcoming FOMC minutes, both of which could generate short-term volatility. Over a longer horizon, persistent central bank purchases continue to provide a supportive structural backdrop for gold.
Zaid Barem / ymm
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