Macroeconomic Events Drive Gold’s Strength, Pressu

Macroeconomic Events Drive Gold’s Strength, Pressure Risk Assets

Recent events around the world have strengthened the perception of gold as a safe haven. Constant geopolitical tensions, including new US tariff threats and conflicts in the Middle East and Ukraine, have prompted investors to avoid risk. The US Federal Reserve has adopted a dovish strategy, with the markets speculating a potential rate cut by September, further weakening the US Dollar. This has supported gold, which has held its ground following an initial correction of recent peaks.

Meanwhile, gold prices are also supported by the cooling of US inflation data. The lower-than-expected increase in consumer prices in May further supported expectations of reduced interest rates, which once again highlighted the attractions of gold as a non-yielding investment. All these macroeconomic drivers, combined with trade uncertainties, have contributed to containing downside movements in gold and keeping the metal in a favourable position.