Gold price eyes $3,400 once again as investors react to growing global instability and upcoming U.S. trade talks. Despite overall market optimism, the U.S. Dollar failed to gain momentum. This weakness follows the Federal Reserve’s latest decision to keep interest rates unchanged.
On Wednesday, the Fed held the federal funds rate between 4.25% and 4.50%. Policymakers expressed concern over rising inflation and potential unemployment. Fed Chair Jerome Powell acknowledged uncertainty in the U.S. economy. He said it remains unclear whether growth will continue or stall under pressure.
Meanwhile, gold prices remain supported by strong safe-haven demand. Investors continue to seek protection amid geopolitical tensions. Recent escalations in Ukraine and the Middle East have intensified market fears. Ukraine reported new Russian airstrikes in the Sumy region just hours after a declared ceasefire.
Elsewhere, Oman announced it had brokered a temporary truce between the U.S. and the Houthis. However, Houthi leaders publicly rejected the idea of halting their attacks. In Asia, Pakistan and India also saw renewed military conflict. Reports confirmed Indian missile strikes on several targets in Pakistan and Pakistan-Occupied Kashmir. Artillery exchanges followed along the Line of Control.
At the same time, market participants are closely watching U.S. trade discussions. From May 9 to May 12, officials from Washington and Beijing will meet in Geneva. Although some analysts hoped for tariff relief, U.S. President Donald Trump dismissed any rollback of current measures. He insisted the 145% tariffs on Chinese goods will remain in place.
Despite hopes for a breakthrough, investors remain cautious. Many view any dip in gold prices as a buying opportunity. In fact, analysts note that technical charts favor a continued upward trend. As a result, gold price eyes $3,400 again, signaling strong investor demand.
Ultimately, trade tensions and global instability continue to fuel gold’s rise. The combination of economic uncertainty and military conflict makes gold more attractive. Gold price eyes $3,400, and investors will be watching closely as events unfold in Geneva.
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