By Tony Sage, CEO of Critical Metals
Gold advanced to a certain extent on Wednesday, recovering part of the previous session’s decline. Renewed demand for safe-haven assets amid rising trade and geopolitical uncertainty could continue to support the market. A new 10% global tariff introduced by the US administration came into effect this week, with indications that the rate could be lifted further. This could reignite trade frictions and unsettle global supply chains, which could drive investors to hedge with precious metals.
At the same time, markets are closely monitoring the resumption of the discussions between Washington and Tehran. While Iranian officials have signalled willingness to advance negotiations, the path toward a definitive agreement remains full of obstacles. A breakdown in negotiations could precipitate flows into safe-haven assets like gold. In Eastern Europe, hostilities persist, and instability in Mexico adds another layer of fragility to the global landscape.
Inflows into gold ETFs were modest last week, suggesting some hesitation after robust US GDP data, firmer PCE readings, while the Federal Reserve’s minutes showed a divided committee and reduced expectations of aggressive easing. Recent remarks from Fed officials advocating patience reinforce a data-dependent stance, which could weigh on gold to a certain extent.