Gold prices expected to hold as geopolitics and Fed policy shape markets

Economist Tuna Kaya said recent pullbacks in gold and silver are not a permanent trend and highlighted three factors driving global finance: renewed U.S.–Iran tensions, the Federal Reserve’s tight‑money stance and strong investment appetite for technology, especially AI and semiconductors. He noted that central banks are likely buying gold beyond official statistics, which could support prices, and pointed to a $75 per‑barrel Brent oil level as a key inflation driver.

A Wall Street Journal analysis echoed the heightened geopolitical risk from the Middle East, U.S.–China rivalry and the Russia‑Ukraine war, saying these forces are squeezing both equities and sovereign bonds. Investors are rebalancing portfolios, with the Australian Future Fund shifting more into stocks, and many increasing exposure to gold, hedge funds and inflation‑linked securities as traditional safe‑haven bonds lose appeal.