Port Harcourt — Gold advanced on Monday, edging close to all-time highs as a softer US dollar and heightened geopolitical tensions boosted safe-haven demand. Thin liquidity due to the US holiday also amplified price moves, with investors positioning ahead of key US labour market releases later in the week.
Attention remained on the Federal Reserve after dovish remarks by San Francisco Fed President Mary Daly reinforced expectations of a 25-basis-point rate cut this month. The upcoming employment indicators, including job openings, ADP payrolls and non-farm payrolls, will be critical in shaping the Fed’s decision. Any signs of ongoing weakening labour conditions could raise expectations of a dovish stance from the Federal Reserve and weigh on US Treasury yields, benefiting the bullion.
Geopolitical tensions further underpinned safe-haven positioning. The conflict in Gaza escalated after Israeli strikes, while Houthi forces in Yemen pledged more attacks and detained UN staff. In Europe, Ukraine vowed retaliatory strikes following renewed Russian drone attacks on energy infrastructure, while Putin and Xi Jinping met in Beijing in a show of strategic alignment.
*Markets analysis on behalf of Konstantinos Chrysikos Head of Customer Relationship Management at Kudotrade
