Analyst: Expectations of interest rate cuts and safe-haven demand drive up gold prices, key non-farm payroll data in focus this week

According to Odaily, gold prices continued to rise on Tuesday, reaching a one-week high, boosted by dovish remarks from Federal Reserve officials that strengthened expectations of interest rate cuts, as well as heightened safe-haven demand due to tensions in Venezuela. Ilya Spivak, Global Macro Head at Tastylive, stated that the comments from Federal Reserve officials "certainly did not have a negative impact, but it does not appear to have fundamentally changed the market's outlook." This week is particularly crucial, with the employment report set to be released on Friday. On Monday, Federal Reserve's Kashkari said 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 and Maduro highlight the broader trend of deglobalization." In a low interest rate environment and during periods of geopolitical or economic uncertainty, non-yielding assets typically perform better. (Golden Ten Data)