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

MeNews · 2026-04-06T06:57:48+00:00

ME News Report, April 1 (UTC+8), Wednesday: Gold prices edged higher, reaching a nearly two-week high, mainly supported by a weakening dollar. Marex analyst Edward Mell stated that the news about the possibility of ending the war within two to three weeks even if the Strait of Hormuz remains closed boosted the U.S. stock market and lifted gold prices. However, if inflation expectations rise again, interest rates could increase further, which would limit the upside potential of gold. The market has almost completely ruled out the possibility of the Federal Reserve cutting interest rates this year, whereas before the outbreak of the war, the market had expected two rate cuts this year. OCBC Bank strategist Christopher Wong said that if geopolitical tensions ease further, market expectations for the Federal Reserve to loosen monetary policy could return. In such a scenario, real yields are expected to decline, providing support for gold prices.

MeNews

2026-04-06 06:57:48

ME News message on April 1 (UTC+8): Wednesday, gold prices rose slightly and touched a near two-week high, mainly supported by a weaker U.S. dollar. Marex analyst Edward Meir said that talk that the U.S. could end the war within two to three weeks even without the Strait of Hormuz being reopened boosted U.S. equities and lifted gold prices as well. However, if inflation expectations pick back up, interest rates could rise further, which would also limit how much gold prices can climb. The market has essentially priced in no chance of the Fed cutting rates this year, while before the outbreak of the war the market had expected two rate cuts this year. OCBC strategy analyst Christopher Wong said that if geopolitical tensions ease further, market expectations for the Fed to loosen monetary policy could return. In that scenario, real yields are expected to fall, providing support for gold prices. (Jin Ten) (Source: ODAILY)

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