Gold prices eased on Thursday after hitting a record high
Fed Rate Cuts: Traders priced in 69 basis points of easing this year, with a July cut fully anticipated, supporting gold’s appeal in a lower-rate environment.
Geopolitical Risks: Escalating Middle East tensions, including Israeli airstrikes in Gaza that killed 91 Palestinians, bolstered safe-haven demand.
Economic Uncertainty: Fed Chair Jerome Powell noted Trump’s tariffs may have slowed U.S. growth and raised inflation, adding to gold’s allure.
Market Sentiment:
Analysts at Citi project gold could reach $3,500/oz by year-end if stagflation fears intensify.
Alex Ebkarian (Allegiance Gold): “Gold isn’t yet acting as a safe-haven for retail investors, but economic slowdowns could change that.”