Market sentiment continues to be swayed by factors such as interest rate projections, the timing and extent of potential rate adjustments, and escalating geopolitical tensions, all of which have contributed to pushing gold prices to unprecedented levels.

Despite enduring fundamental challenges, the UK economy exhibits a degree of resilience, though concerns linger regarding persistent wage inflation. Analysts are predicting a 0.75% reduction in interest rates by the Bank of England this year, anticipated to commence in either June or August.

In the United States, Federal Reserve Chair Powell reiterated a cautious approach towards rate cuts, while market projections indicate the initiation of a cutting cycle in June, with an expected cumulative reduction of 0.75% throughout the year. The US economy maintains robust performance, with recent data propelling yields to new highs for the year. The forthcoming US jobs report and inflation figures are pivotal in shaping monetary policy, potentially introducing heightened short-term volatility.

Across Europe, headline inflation fell slightly below expectations at 2.4%, reinforcing anticipations of aggressive rate reductions by the central bank, slated to begin in June, with nearly 1% in cuts anticipated.

Regarding currency exchanges, GBP/USD experienced a decline towards its year-to-date lows around 1.2550 this week before rebounding, while GBP/EUR remains relatively stable, hovering around the 1.1700 mark.