By Joseph Dahrieh, Managing Principal at Tickmill
Gold extended its rally on Wednesday, briefly touching a new all-time high before consolidating later in the session. The metal remains underpinned by sustained demand for safe-haven assets, with geopolitical risks elevated across Eastern Europe, the Middle East, Asia, and Latin America, and little evidence of near-term de-escalation.
Despite pockets of market volatility, yesterday’s robust US growth data has done little to alter the broader macro narrative. The latest data showed US Q3 GDP expanding at a 4.3% annualised pace, yet market pricing continues to reflect expectations of monetary easing in 2026. A base case of two rate cuts could continue to support gold.
Investment flows also remain supportive. Gold-backed ETFs have recorded renewed inflows, while central banks continue to add to reserves at a steady pace. Together, accommodative rate expectations and an unsettled geopolitical backdrop are likely to remain the key drivers shaping gold’s near-term trend.