Under the market's repeated weighing of the direction of U.S. monetary policy and global situations, gold prices have recently gained support and strengthened. According to Jinshi Data, investors generally expect the Federal Reserve's policy to trend towards easing, coupled with rising geopolitical uncertainties in various regions, which together have increased the attractiveness of gold.
Exness analyst Christopher Tahir stated that the recent policy signals from the Federal Reserve and Chairman Powell's remarks have not leaned towards hawkish as the market previously worried, but instead reinforced the market's expectations for subsequent interest rate cuts. Current traders have begun to bet on further rate cut opportunities still existing in 2026, which is beneficial for gold prices.
Meanwhile, geopolitical factors continue to ferment. The prospects for peace negotiations between Russia and Ukraine remain unclear, and tensions in the Middle East and Latin America have increased the allocation value of gold as a safe-haven asset. In addition, continuous inflows into gold ETFs, central banks of multiple countries maintaining their pace of gold purchases, and market concerns about the future independence of the Federal Reserve have also supported gold demand in various ways.
