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Gold poised for further gains amid global easing cycle – London Business News | Londonlovesbusiness.com
![Gold poised for further gains amid global easing cycle – London Business News | Londonlovesbusiness.com Gold poised for further gains amid global easing cycle – London Business News | Londonlovesbusiness.com](https://mloyoq1wv9pf.i.optimole.com/w:auto/h:auto/q:mauto/f:best/ig:avif/https://londonlovesbusiness.com/wp-content/uploads/2024/05/Gold-graph-IMAGO-Westlight-Avalon.jpg)
Gold advanced, continuing its positive momentum from the previous session when it surged over 1% to a two-week high.
This rise was primarily fueled by disappointing U.S. economic data released on Thursday, which heightened market expectations that the Federal Reserve may soon initiate its easing program.
Additionally, the Bank of England (BoE) adopted a dovish stance on Thursday, increasing the likelihood of an interest rate cut in August.
Similarly, earlier this month, the European Central Bank (ECB) decided to reduce borrowing costs, and the Swiss National Bank (SNB) implemented its second rate cut of 2024 on Thursday, signalling the start of an easing cycle. These developments are likely to provide further support to gold prices in the medium term.
Gold could receive further support if today’s US manufacturing and services PMI come in lower than market expectations.
Meanwhile, geopolitical tensions in the Middle East, which could escalate further, are also expected to bolster demand for gold as a safe haven. Moreover, upcoming political elections in various developed countries could heighten market risk aversion, potentially increasing gold’s appeal. Central bank demand, anticipated to continue rising, should also support gold prices.