Fed interest rate cut expectations cool down; gold's safe-haven attributes are temporarily suppressed

K-LinePoet · 2026-04-02T00:04:51+00:00

Amid ongoing geopolitical conflicts in the Middle East and disruptions to the global shipping "artery" of the Strait of Hormuz, gold, as a traditional safe-haven asset, has not experienced the expected surge. Instead, since March, it has entered a phase of oscillating decline. Industry insiders believe that multiple factors—such as declining expectations of Federal Reserve rate cuts, the temporary safe-haven advantage of the US dollar, and shifting capital flows—have collectively caused a short-term divergence between gold prices and geopolitical risks. In the short term, gold prices are likely to fluctuate within a wide range, but in the long term, they still hold upward potential. (China Securities Journal)

K-LinePoet

2026-04-02 00:04:51

Against the backdrop of ongoing geopolitical tensions in the Middle East and disruptions to global shipping through the “lifeline” of the Strait of Hormuz, gold—an established safe-haven asset—has not seen the expected surge. Instead, since March it has fallen into a pattern of volatile decline. Industry insiders believe that a combination of multiple factors—including a decrease in expectations for Federal Reserve rate cuts, the temporary safe-haven advantage of the U.S. dollar becoming more pronounced, and shifts in capital flows—has together driven a short-term divergence between the gold price and geopolitical risk. In the short term, the gold price may mainly trade in wide-range volatility, while in the long term it still has upside potential. (China Securities Journal)

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