Market comment
Market comment on behalf of Ruben Ferreira – Head of Portuguese Operations at FlowCommunity
Gold remains under pressure, declining for three consecutive sessions to its lowest level in a month, largely due to a stronger U.S. dollar and reduced safe-haven demand. Amid the broader market reassessment of fiscal and monetary strategies following Trump re-election, there is a marked rotation into riskier assets as market participants anticipate potential changes in economic policy.
The potential for tariffs early in Trump’s presidency has heightened inflationary concerns, contributing to expectations of a delayed easing cycle from the Federal Reserve. This outlook has further strengthened the dollar, adding to the bearish momentum for gold. Given these factors, the near-term view on gold remains negative, with limited support for an immediate upward reversal in the precious metals market under current conditions.
Looking ahead, key economic events this week will be pivotal for gold’s outlook. Market participants are focusing on upcoming U.S. consumer inflation data and the Producer Price Index (PPI), which may offer insights into inflation trends and monetary policy directions. Additionally, speeches from Federal Reserve Chair Powell and other FOMC members could clarify potential interest rate strategies, potentially affecting gold amid ongoing speculation around the Fed’s policy timeline.
