Geopolitics and inflation intertwine as gold moves sideways, awaiting US-Iran negotiations and data guidance
- On Thursday during the Asian session, spot gold was basically unchanged near $4,715 per ounce, as investors remained on the sidelines, waiting for clear signals from the US-Iran ceasefire negotiations and the release of key US inflation data later in the day.
- On Wednesday, Israel launched its most intense airstrikes to date on Lebanon, resulting in hundreds of deaths and triggering threats of retaliation from Iran. Iran indicated that continuing negotiations with the US would be “unreasonable” under these circumstances, highlighting persistent regional instability. Since the outbreak of the war on February 28, spot gold has fallen by more than 10%.
- The minutes of the Federal Reserve’s March meeting show that an increasing number of policymakers believe it may be necessary to raise interest rates to address inflation that remains persistently above the 2% target, especially amid inflationary pressures brought by the Iran war. Investors are now awaiting the release of February’s PCE data and initial jobless claims data today.
- Standard Chartered Bank stated that, aside from short-term liquidity needs, gold is expected to continue its upward trend in the coming months as geopolitical risks intensify.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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