Gold Prices Steady Ahead of Good Friday Amid Geopolitical Tensions and Fed Comments
Gold (XAU/USD) remains steady this Friday after pulling back from its all-time high of $3,358, as investors opted to book profits ahead of the long Easter weekend. Market participants continue to keep a close eye on rising geopolitical tensions and uncertainty surrounding former US President Donald Trump’s proposed tariffs on imports, both of which are supporting demand for the safe-haven metal.
Meanwhile, a more hawkish stance from Federal Reserve Chair Jerome Powell has reduced expectations of a rate cut in June, providing support to the US Dollar. A stronger Greenback typically pressures USD-denominated assets like Gold. Powell also raised concerns about a potential stagflation scenario, citing the risk of a weak economy combined with persistent inflation.
Later today, investors will be watching for remarks from Federal Reserve official Mary Daly. However, with Good Friday impacting market participation, trading volumes are expected to remain relatively thin.