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

MeNews · 2026-04-06T04:08:10+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

2026-04-06 04:08:10

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ME News, April 1 (UTC+8), Wednesday: Gold prices edged up slightly and touched 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 potentially end the war within two to three weeks even without the reopening of the Strait of Hormuz boosted U.S. equities and lifted gold prices as well. However, if inflation expectations start to rise again, interest rates could climb further, which would also limit the upside for gold prices. The market has almost completely ruled out the possibility of the U.S. 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 Oversea-Chinese Banking, said that if geopolitical tensions ease further, market expectations for the Federal Reserve to loosen monetary policy could return. In that case, real yields are expected to fall, providing support for gold prices. (Jin10) (Source: ODAILY)

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