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

MeNews · 2026-04-05T21:10:55+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

2026-04-05 21:10:55

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ME News message: On April 1 (UTC+8), Wednesday’s gold price edged higher, reaching a near two-week high. The move was mainly supported by a weaker U.S. dollar. Marex analyst Edward Mair said that speculation that the United States could end the war within two to three weeks even without the Strait of Hormuz reopening boosted U.S. stocks and helped lift gold prices as well. However, if inflation expectations pick up again, interest rates could rise further, which would also limit gold’s upside. The market has almost entirely ruled out the possibility of the Federal Reserve cutting rates this year, whereas before the outbreak of the war, the market had expected two rate cuts this year. OCBC strategist Christopher Wong said that if geopolitical tensions ease further, market expectations for the Federal Reserve to loosen monetary policy may return. In that scenario, real yields are expected to fall, which would provide support for gold prices. (Jin10) (Source: ODAILY)

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