Gold prices have rebounded from a key support level of $2,955, attempting to reverse a recent decline. Bullion is expected to maintain its appeal as a safe-haven asset amid concerns of potential stagflation or recession. Currently trading above $3,000, Gold (XAU/USD) has experienced intraday gains of nearly 1%, mirroring a recovery in equity markets following significant downturns. This upward movement is attributed to both technical factors and escalating geopolitical tensions, specifically the trade dispute between the United States and China. The US administration has threatened increased tariffs on Chinese imports, contributing to volatility in the US yield curve. Market expectations now indicate the possibility of multiple interest rate cuts by the Federal Reserve in 2025, a significant shift from previous forecasts.
