Analyst: The expectation that the Federal Reserve may ease monetary policy could return, easing geopolitical risks and benefiting gold.

MeNews · 2026-04-06T02:21:10+00:00

Gold prices edged higher on Wednesday, supported by a weaker US dollar and expectations of an end to US conflicts. Analysts suggest that easing geopolitical tensions could influence Federal Reserve policies, thereby supporting gold prices.

MeNews

2026-04-06 02:21:10

Abstract generation in progress

ME News message, April 1 (UTC+8), on Wednesday, gold prices edged higher, touching a near two-week high, mainly supported by a weaker U.S. dollar. Marex analyst Edward Meir said that talk that the U.S. could end the war within two to three weeks even if the Strait of Hormuz is not reopened boosted U.S. equities and lifted gold prices as well. However, if inflation expectations pick up again, interest rates could rise further, which would also limit how much gold prices can go up. The market has almost completely ruled out the possibility of the Federal Reserve cutting rates this year, while before the outbreak of the war, the market had expected two rate cuts this year. Christopher Wong, a strategist at OCBC, said that if geopolitical tensions further ease, market expectations for the Fed to loosen monetary policy could return. In this scenario, real yields are expected to fall, providing support for gold prices. (Jin10) (Source: ODAILY)

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.