"Gold pulled back toward the USD 5,000 level on Friday, as investors reassessed positioning ahead of the expected announcement of the next chair of the Federal Reserve. Despite the intraday correction, the metal remains on track to close both the week and the month higher. Markets are increasingly focusing on reports pointing to Kevin Warsh as the leading candidate for the Fed President role."
"The potential for a more conservative and less aggressive approach compared to other candidates has tempered expectations of rapid or heavy monetary stimulus, weighing on non-yielding assets such as gold in the short term. Investor reaction will hinge not only on confirmation of the nomination but also on early signals about his policy philosophy. A dovish tilt could quickly revive upside momentum, while a more cautious stance may extend today's decline."
Gold pulled back toward the USD 5,000 level as investors reassessed positioning ahead of the expected announcement of the next Federal Reserve chair. Despite the intraday correction, the metal remains on track to close both the week and the month higher. Markets increasingly focus on reports naming Kevin Warsh as the leading candidate, and expectations for a more conservative policy have tempered hopes for rapid or heavy monetary stimulus, weighing on non-yielding assets. Investor reaction will hinge on nomination confirmation and early policy signals, with a dovish tilt able to revive upside momentum. Geopolitical risks and large ETF inflows continue to support gold.
Read at London Business News | Londonlovesbusiness.com
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