Gold stuck but central bank policies pose downside risks next week
Although gold continues to find initial support around $4,700 an ounce, the market remains stuck in neutral, unable to break above $4,800 an ounce, as geopolitical uncertainty continues to favor the U.S. #dollar as a safe-haven asset.
Along with the ongoing uncertainty surrounding the ceasefire and peace negotiations in the Middle East, some analysts have said that the #gold market could retest the bottom end of its broader range next week, as higher oil prices also fuel inflation fears, which in turn could force the Federal Reserve to maintain its current monetary policy for the foreseeable future.
“As fears over #inflation shocks mount, central banks are likely to keep rates steady or even hike down the road,” said Lukman Otunuga, Senior Market Analyst at FXTM. “This hawkish reality is bad news for zero-yielding gold despite the risk-off sentiment.”
Article at Kitco
kitco.com/news/article/2026-…
Gold stuck but central bank policies pose downside risks next week
