📣 GLOBAL GOLD MARKET UPDATE – JUNE 26, 2025
✔️Fed Chair Jerome Powell Concludes Testimony Before Congress
Key Points: Powell maintained a "data-dependent" stance, warning of inflation risks from potential new tariffs. No clear signals were given on the timing of rate cuts.
❗️Weakens USD – Markets view Powell as not hawkish enough → USD drops
❗️ Supports gold – Delayed rate cut expectations boost gold's appeal
💬Trump's Remarks on Possibly Replacing Powell Raise Political Concerns
Market Reaction: The USD dropped to a 2-year low amid fears of political interference in Fed policy.
❗️ Increased policy uncertainty → Drives safe-haven demand
📉US Q2 GDP (Preliminary) Set to Be Released This Week
Market Expectations: Modest economic growth; any surprise could trigger volatility.
❗️Stronger-than-expected GDP → Delays Fed easing → Bearish for gold
❗️Weaker GDP → Increases recession risk → Bullish for gold
📊Core PCE Price Index – Fed’s Preferred Inflation Gauge (Due Friday)
Relevance: This data will heavily influence the Fed’s next policy move.
❗️High inflation reading → Fed may hold rates longer → Negative for gold
❗️ Cooling inflation → Rate cut hopes rise → Positive for gold
🌐Geopolitical Tensions Persist in the Middle East and Eastern Europe
Current Status: No major escalations yet, but risks remain elevated.
❗️Sudden escalations → Surge in safe-haven demand
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