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

MeNews · 2026-04-05T21:51:10+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 21:51:10

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ME News message, April 1 (UTC+8). On Wednesday, gold prices edged higher, reaching a near two-week high, mainly supported by a weaker U.S. dollar. Marex analyst Edward Meir said that talk suggesting the U.S. could end the war within two to three weeks even without the Strait of Hormuz reopening boosted U.S. equities and lifted gold prices as well. However, if inflation expectations start to rise again, interest rates could move higher further, which would also limit the upside for gold. The market has nearly fully priced 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. Christopher Wong, a strategist at OCBC, said that if geopolitical tensions ease further, market expectations for the Fed to ease monetary policy could return. In this scenario, real yields are expected to fall, which would provide support for gold prices. (Jin10) (Source: ODAILY)

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