ING: The next driver for gold prices is the interest rate outlook

Golden Ten Data reported on May 6 that President Trump has withdrawn the plan to guide merchant ships through the Strait of Hormuz, easing the immediate risk of US-Iran conflict escalation, which led to a rise in gold prices. Warren Patterson and Ewa Manthey from ING stated that concerns about further escalation of the conflict help sustain gold's safe-haven appeal. However, a more lasting ceasefire would reduce inflation risks, thereby limiting the possibility of further Federal Reserve rate hikes, which supports gold. For gold, the next driver will be the outlook for interest rates. The US Treasury’s borrowing plans and key economic data may influence market expectations regarding Federal Reserve policy.