Gold prices showed a rebound during the Asian session on Friday, recovering some losses from the previous two days. The rally was driven by safe-haven demand amid ongoing concerns about inflation and potential U.S. Federal Reserve rate hikes. However, the recovery remains fragile as mixed signals from central bank policies and economic data continue to weigh on investor sentiment. For traders, the move highlights the delicate balance between inflation-driven demand for gold and the impact of higher interest rates, which typically reduce the metal's appeal. The U.S. Dollar's performance against major currencies will be a critical factor, as a weaker dollar often boosts gold prices. Market participants are closely watching upcoming Fed statements and inflation data for further guidance. Looking ahead, the key focus will be on the Fed's next policy decisions and how they align with global economic conditions. For Gulf investors, fluctuations in gold prices could influence hedging strategies and portfolio allocations, especially as regional markets remain sensitive to global monetary trends. The 1,950-1,970 dollar/ounce level will be a crucial resistance zone to monitor in the coming sessions.

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