Gold News: Dovish Fed Signals and Trade Risks Fuel Bullish Gold Price Predictions
Benchmark 10-year yields slipped to 4.42%, while the 2-year yield dropped to 3.87%, a notable decline that confirms easing pressure on the short end of the curve. Lower yields help support gold prices, which gain in appeal as opportunity costs fall. The broader Treasury complex reflected safe-haven flows, despite upbeat U.S. housing and retail data suggesting the economy remains stable for now.
Geopolitical and Trade Tensions Keep Safe-Haven Demand Alive
President Trump’s renewed tariff threats on EU goods—reportedly demanding 15%-20% levies—rekindled market anxiety. Talks with Japan and Indonesia remain unresolved, and traders are bracing for further trade friction. These developments, alongside speculation over Powell’s job security, have strengthened the case for safe-haven exposure.
Precious metals, including gold, rallied broadly on the back of a weaker dollar. Analysts from Marex and Standard Chartered both underscored gold’s resilience, with the latter noting that gold’s “floor looks well supported.”