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

Odaily · 2026-04-01T08:18:29+00:00

Gold prices edged higher on Wednesday due to a weaker US dollar, reaching a nearly two-week high. Analysts note that if geopolitical tensions ease, it could influence Federal Reserve policy expectations and further impact gold prices. Overall, market expectations for rate cuts have been largely ruled out.

Odaily

2026-04-01 08:18:29

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Odaily Planet Daily News: On Wednesday, gold prices rose slightly and touched their highest level in nearly two weeks, mainly supported by a weaker U.S. dollar. Marex analyst Edward Meir said that talk that the United States could end the war within two to three weeks even if the Strait of Hormuz is not reopened has lifted U.S. equities and pushed gold prices higher as well. However, if inflation expectations pick back up, interest rates could rise further, which would limit the upside for gold. 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 Oversea-Chinese Banking Corporation, said that if geopolitical tensions ease further, market expectations for the Federal Reserve to loosen monetary policy could return. In this scenario, real yields are expected to decline, providing support for gold prices. (Jin10)

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