The Q 2 Rally: A Response to Global Uncertainty
Gold prices hit new heights in the second quarter of year, breaching the $3,500 per ounce mark for the first time amid a wave of global instability. After climbing steadily from $2,658.04 on January 2 to $3,138.24 by April 2, the precious metal faced a brief dip below $3,000 in early April. However, it quickly rebounded, peaking at $3,434.40 on April 21 and briefly touching $3,500 during trading. By June 30, it closed at $3,303.30 showing a volatile yet upward trend driven by tariff threats, geopolitical tensions, and a shaky financial landscape.
Key Drivers Behind the Scene
The surge was sparked by U.S. tariff policies, with broad import fees announced on April 2 causing a global market panic. Investors, wary of rising 10-year bond yields as major holders sold U.S. treasuries, flocked to gold as a safer alternative. A temporary pause in tariff plans eased some pressure, but uncertainty lingered, keeping prices elevated. Geopolitical flare-ups, including Israel’s June 12 attacks on Iranian nuclear sites and ongoing regional conflicts, further bolstered demand. Central banks added to the momentum, purchasing 244 metric tons in Q1 (24% above the five-year average) and 20 metric tons in May, while retail and ETF inflows-$21 billion in North America, $6 billion in Europe, and $11 billion in Asia for the first half-signaled growing interest.
Persistent Risks and Opportunities
Experts predict that the factors fueling gold’s rise won’t fade soon. Tariff deadlines, now extended to August 1 after a July 9 reprieve, could trigger another rally if tensions escalate. I feel existing tariffs could gradually lift prices, potentially prompting the Federal Reserve to delay rate cuts, which would further boost gold demand, especially among central banks. A weaker U.S. dollar-down 11% year-to-date-also enhances gold’s appeal for international buyers, a trend, I think, will persist.
Geopolitical hotspots, including Middle East tensions and ongoing global conflicts, add to the uncertainty. Prolonged shock period, rather than the typical summer lull, suggests gold could remain a go-to safe haven. Higher inflation expectations and a fragile dollar outlook only strengthen its case.
Couple Last Words
Gold’s second quarter performance keeps holding tight its role as a hedge against uncertainty. With prices holding above $3,300 and potential catalysts like tariffs and geopolitics on the horizon, it’s a compelling option for diversification. Watch for the August 1 tariff update-it could be a key inflection point.
Gold prices hit new heights in the second quarter of year, breaching the $3,500 per ounce mark for the first time amid a wave of global instability. After climbing steadily from $2,658.04 on January 2 to $3,138.24 by April 2, the precious metal faced a brief dip below $3,000 in early April. However, it quickly rebounded, peaking at $3,434.40 on April 21 and briefly touching $3,500 during trading. By June 30, it closed at $3,303.30 showing a volatile yet upward trend driven by tariff threats, geopolitical tensions, and a shaky financial landscape.
Key Drivers Behind the Scene
The surge was sparked by U.S. tariff policies, with broad import fees announced on April 2 causing a global market panic. Investors, wary of rising 10-year bond yields as major holders sold U.S. treasuries, flocked to gold as a safer alternative. A temporary pause in tariff plans eased some pressure, but uncertainty lingered, keeping prices elevated. Geopolitical flare-ups, including Israel’s June 12 attacks on Iranian nuclear sites and ongoing regional conflicts, further bolstered demand. Central banks added to the momentum, purchasing 244 metric tons in Q1 (24% above the five-year average) and 20 metric tons in May, while retail and ETF inflows-$21 billion in North America, $6 billion in Europe, and $11 billion in Asia for the first half-signaled growing interest.
Persistent Risks and Opportunities
Experts predict that the factors fueling gold’s rise won’t fade soon. Tariff deadlines, now extended to August 1 after a July 9 reprieve, could trigger another rally if tensions escalate. I feel existing tariffs could gradually lift prices, potentially prompting the Federal Reserve to delay rate cuts, which would further boost gold demand, especially among central banks. A weaker U.S. dollar-down 11% year-to-date-also enhances gold’s appeal for international buyers, a trend, I think, will persist.
Geopolitical hotspots, including Middle East tensions and ongoing global conflicts, add to the uncertainty. Prolonged shock period, rather than the typical summer lull, suggests gold could remain a go-to safe haven. Higher inflation expectations and a fragile dollar outlook only strengthen its case.
Couple Last Words
Gold’s second quarter performance keeps holding tight its role as a hedge against uncertainty. With prices holding above $3,300 and potential catalysts like tariffs and geopolitics on the horizon, it’s a compelling option for diversification. Watch for the August 1 tariff update-it could be a key inflection point.
CEO Mind-Money.eu
🌐 mind-money.eu
Personal website of Julia Khandoshko:
🌐 iuliia-khandoshko.com/
🌐 mind-money.eu
Personal website of Julia Khandoshko:
🌐 iuliia-khandoshko.com/
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
CEO Mind-Money.eu
🌐 mind-money.eu
Personal website of Julia Khandoshko:
🌐 iuliia-khandoshko.com/
🌐 mind-money.eu
Personal website of Julia Khandoshko:
🌐 iuliia-khandoshko.com/
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.