By Daniel Takieddine, Co-founder and CEO, Sky Links Capital Group
Gold rose on Friday, trading at record highs and set to close the week with solid gains, as intensifying geopolitical tensions continued to underpin demand for safe-haven assets. The rally has also been reinforced by positive inflows into gold-backed ETFs, ongoing purchases by central banks, and expectations of a more accommodative US monetary policy outlook over the medium term.
Geopolitical risks remain elevated across several fronts. In Latin America, investor attention remains on the US blockade of Venezuelan crude shipments. In Eastern Europe, tensions continue with no clear path toward a ceasefire, while risks in the Middle East remain. In Asia, frictions between China and Japan remain elevated, adding another layer of uncertainty to the global outlook. Recent developments in Africa have also had an impact on investor sentiment.
From a monetary policy perspective, markets continue to expect the Federal Reserve to deliver two interest rate cuts in 2026, a scenario that supports non-yielding assets such as gold. Looking ahead, the approaching end of Chair Jerome Powell’s term and the possibility of a more dovish Fed leadership could serve as tailwinds for bullion. With year-end approaching, thinner market liquidity may amplify price swings.