Geopolitical Tensions Drive Safe-Haven Demand
Geopolitics are playing a huge role in all this – the situation is developing, and gold has seen safe-haven inflows due to the US ratcheting up the pressure on Venezuela’s oil exports. That’s raised concerns about potential supply disruptions and the instability that could follow.
Adding to that, President Donald Trump’s latest social media post has just confirmed that US forces have been carrying out strikes in Nigeria. That has shown that the US is prepared to get involved in various parts of the world with military action.
Domestically, the US dollar is coming under pressure. Expectations that the Federal Reserve might start easing up on interest rates as inflation cools and economic growth slows down is all part of it. With a softer dollar, gold and silver become more attractive to international buyers because they are cheaper. This is boosting demand for gold and silver.
People who trade gold need to keep an eye on US economic developments, what the Fed is saying, and the ongoing geopolitical situation, because all these factors will probably influence near-term price movements.
Short-Term Forecast
Over the short term, gold might just consolidate between $4,480 and $4,575 before picking up again, while silver just takes a breather at $74-$75.
