Gold Spot / U.S. Dollar
Long

Gold rebounds above $3,350 amid global tensions and Fed watch

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Gold wrapped up Friday’s session with a gentle but notable recovery, reaching the 3,350 dollar mark and climbing over 100 pips by the end of the day. This rebound stands out as a positive signal amid a market environment filled with rising uncertainty.

The primary drivers behind gold’s strength include a weakening US Dollar, escalating geopolitical tensions, and a surge in demand for safe-haven assets. Additionally, recent economic data suggests that the US economy remains fundamentally stable, leading investors to believe that the Federal Reserve may refrain from rushing into monetary easing.

Looking ahead, growing expectations of the Fed beginning its rate-cutting cycle in late 2025 and into 2026 are creating a solid base for gold to continue its upward momentum. In a low interest rate environment, non-yielding assets like gold tend to perform better, especially during times of economic turbulence and heightened risk aversion among investors.

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