Analysts: Rate Cut Expectations and Safe-Haven Demand Boost Gold Prices, Key Non-Farm Payroll Data in Focus This Week

Odaily News Gold prices continued to rise on Tuesday, hitting a one-week high, boosted by dovish comments from Federal Reserve officials that fueled rate cut expectations and increased safe-haven demand due to tensions in Venezuela. Ilya Spivak, Head of Global Macro at Tastylive, stated, "(The Fed officials' comments) certainly didn't have a negative impact, but they don't seem to have fundamentally changed the market's assessment. This week is very critical, with the employment report due on Friday." Federal Reserve's Kashkari said on Monday that inflation is slowly declining, but there is a risk of a "sudden rise" in the unemployment rate, which increases the likelihood of rate cuts. Currently, investors expect at least two rate cuts this year. Spivak added, "The US-Venezuela incident involving Maduro highlights the broader trend of deglobalization." Assets that do not generate yield typically perform better in a low-interest-rate environment and during periods of geopolitical or economic uncertainty. (Jin10)