#Gold moved higher on Wednesday, pushing beyond $4,610 per ounce as markets weighed a mix of softer U.S. data and rising risk aversion. Recent figures signaled a cooling in underlying inflation, helping investors look past earlier distortions caused by temporary government shutdowns and reinforcing the view that price pressures are easing at a measured pace.
That shift has reshaped rate expectations. Futures now imply the Federal Reserve could deliver two to three cuts this year, a more accommodative path than the single cut suggested in policymakers’ own projections. Lower expected rates have improved the appeal of non-yielding assets, adding steady support to bullion.
At the same time, demand for defensive assets has increased. Questions around the Federal Reserve’s independence resurfaced after U.S. prosecutors opened a criminal inquiry related to Chair Jerome Powell’s June testimony, introducing an additional layer of political uncertainty. Geopolitical tensions have also remained in focus, with investors monitoring developments around Iran amid renewed U.S. warnings, reinforcing gold’s role as a hedge in an unsettled global backdrop.
