Lagos — Gold prices jumped above the USD 3.000 mark on Tuesday as investors moved to safe-haven assets amid rising geopolitical tensions and economic uncertainty.
On the geopolitical front, escalating tension in Yemen, marked by recent U.S. airstrikes, has fueled risk aversion in global markets, favoring the precious metal.
The market also reacted to the escalating situation in Gaza. However, hopes for a potential ceasefire deal between Ukraine and Russia could lift investor confidence, limiting gold’s gains to a certain extent. However, any setback in negotiations could boost gold’s appeal further.
On the economic front, growing concerns over a potential global recession, driven by persistent trade tensions could drive investors toward gold. Monetary policy could also remain in focus.
As such, tomorrow’s Federal Reserve interest rate decision and economic projections will be closely monitored. Any dovish signals could strengthen gold’s momentum, while a more cautious stance may limit its upside.
*Bas Kooijman is the CEO and Asset Manager of DHF Capital S.A
