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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/gold-faces-pressure-as-us-dollar-and-yields-rebound-but-strong-support-remains/
Gold prices have edged lower after nearing their previous highs, with market participants reacting to fluctuations in the US dollar and rising Treasury yields.
The rebound in yields this week could add pressure on the precious metal, leading to potential volatility in the near term.
Despite these recent declines, gold is still expected to receive significant support from a variety of factors. As a long-standing safe-haven asset, gold continues to attract investors, particularly amid ongoing uncertainties tied to former President Donald Trump’s tariff policies. These trade tensions, coupled with fears about economic growth and rising inflation, have kept gold in favor. Additionally, central banks have been consistently increasing their gold holdings over the past two years, a trend that bolsters expectations for continued institutional demand.
The global monetary policy landscape is also playing a crucial role in shaping gold’s outlook. The European Central Bank (ECB) recently signaled its intention to cut interest rates further, with a reduction expected in the coming week, a move that could provide some lift to gold prices. On the other hand, the US Federal Reserve is expected to maintain a hawkish stance, keeping interest rates elevated in response to inflation concerns tied to Trump’s trade policies. This divergence in policy approaches suggests that gold may face additional headwinds in the short-term, but its fundamental appeal remains strong as a hedge against economic uncertainty.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/gold-faces-pressure-as-us-dollar-and-yields-rebound-but-strong-support-remains/
