Lagos — Gold prices remain on a bullish track for a second consecutive week of gains, driven by persistent safe-haven demand and global uncertainty. The recent pause in momentum follows hopes of de-escalation in trade tensions between the US and several partners. Still, while trade talks with Japan are progressing slowly, the absence of a clear timeline for negotiations with China continues to sustain investor caution.
Meanwhile, Federal Reserve Chair Jerome Powell struck a hawkish tone midweek, warning of a stagflationary scenario. His remarks reinforced the perception that policymakers may delay any rate adjustments until more clarity emerges. While this stance could favor yielding assets, persistent inflation may still support demand for gold.
Additionally, the European Central Bank’s recent interest rate cut may enhance the bullion’s appeal in a low-yield environment. Geopolitical risks also continued to support gold’s underlying strength. Looking ahead, the focus will turn to next week’s US macroeconomic data and any new developments on the trade front.
*Hassan Fawaz Chairman & Founder of GivTrade
