WGC: Gold Steady on Geopolitical Shifts, Rate Cut Bets; Focus on Fed Signals

SEATTLE (Scrap Monster): Global markets strengthened last week as easing tensions between the U.S. and Iran improved investor sentiment, while stronger-than-expected economic data from major economies and solid Q1 U.S. corporate earnings added support, said the Weekly Markets Report published by the World Gold Council (WGC).

Equity markets ended higher, even as U.S. Treasury yields, the dollar, and oil prices declined. A sharp drop in Brent crude, alongside upgrades in U.S. bank earnings and the unwinding of heavy short positions, helped push equities to record highs. However, the rally remains fragile amid unresolved Middle East risks.

Gold prices showed resilience, rising 2% over the week to $4,871/oz and lifting year-to-date gains to 11.5%. The metal continues to draw support from macro uncertainty and expectations of interest rate cuts by the Federal Reserve.

Concerns surrounding the Strait of Hormuz briefly eased but resurfaced after renewed disruptions, keeping markets on edge. Meanwhile, attention is turning to the upcoming confirmation hearing of Kevin Warsh, whose policy stance could significantly influence rate expectations and market direction.

Technically, gold is testing resistance near $4,893/oz, with analysts expecting a consolidation phase within its broader long-term uptrend.

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