Gold Prices at Inflection Point as Fed Rate Cuts Loom, Says DHF Capital Leadership

Geopolitical tensions are amplifying safe-haven appeal in financial markets. With the Trump administration intensifying pressure on Venezuela’s oil sector through new sanctions enforcement, investors are increasingly rotating capital into traditional hedges. DHF Capital CEO Bas Kooijman highlighted this dynamic as a key driver of current market positioning.

Looking ahead to the first half of 2026, market participants are pricing in two Federal Reserve interest rate reductions, according to Kooijman’s analysis. This expectation persists despite recent employment figures showing mixed signals about the labor market’s underlying strength. The critical turning point arrives this Thursday with Thursday’s Consumer Price Index release, which will offer fresh perspective on inflation momentum.

Should inflation readings decline as many analysts anticipate, the implications could ripple through currency and commodity markets. Lower yield environments typically pressure the US dollar, while simultaneously creating favorable conditions for gold to extend its upside. Kooijman suggests that such an outcome could propel gold prices toward uncharted territory.

The convergence of multiple factors—shifting monetary policy expectations, international trade tensions, and flight-to-safety flows—has created a perfect storm for precious metals. DHF Capital’s assessment indicates that investors watching Thursday’s inflation data release should pay close attention, as it may catalyze significant moves across currency, equity, and commodity markets in the coming weeks.