By Antoine Nadaf, Country Manager at Givtrade
Gold recovered slightly on Wednesday, after a decline yesterday, as markets navigated thinner liquidity conditions amid holidays in China. In the meantime, the market could remain exposed to ongoing geopolitical developments and key US economic data releases.
On the geopolitical front, reports that Washington and Tehran agreed on broad guiding principles in their discussions offered tentative optimism. However, caution over the next steps remains. In Eastern Europe, peace talks continue in parallel with ongoing hostilities, reinforcing a backdrop of persistent uncertainty that could sustain demand for the precious metal.
At the same time, investors await the release of the FOMC minutes, followed by US GDP and PCE data later this week. With the labour market still relatively resilient and inflation moderating, markets are searching for clearer guidance on the trajectory of US rates.
Conflicting remarks from Federal Reserve officials have amplified uncertainty, leaving yields sensitive to incoming data. A more cautious policy tone could weigh on bullion. Nonetheless, structural support remains visible through a return of ETF inflows and steady central bank purchases.