Analyst: Expectations of interest rate cuts and safe-haven demand boost gold prices; focus on key non-farm payroll data this week

Odaily Planet Daily reported that, influenced by Federal Reserve officials’ dovish remarks boosting expectations of rate cuts and the tense situation in Venezuela increasing safe-haven demand, gold prices continued to rise on Tuesday, reaching a one-week high. Tastylive Global Macro Director Ilya Spivak stated that (the Fed officials’ remarks) certainly did not cause any negative impact, but it seems they did not fundamentally change the market’s judgment. This week is very critical, with the employment report to be released on Friday. Federal Reserve’s Kashkari said on Monday that inflation is slowly declining, but there is a risk of a “sudden rise” in the unemployment rate, which increases the likelihood of rate cuts. Currently, investors expect at least two rate cuts this year. Spivak added, “The US-Venezuela incident highlights a broader trend of de-globalization.” In a low-interest-rate environment and during periods of geopolitical or economic uncertainty, assets that do not generate yields tend to perform better. (Jin10)