Gold Above $2900 Amid Interest Rate and Trade Pressures

Gold prices remained near their historical highs, driven by increased demand for the precious metal as a safe haven amid rising trade tensions and inflation in the United States.
With ongoing economic uncertainty, investors are closely watching the Federal Reserve’s stance on interest rates,
which directly impacts gold’s movements in global markets.

Contents

Gold Performance
Federal Reserve Policies
Record Levels
Market Movements

Gold Performance

Gold traded above $2,900 per ounce after a recent economic report revealed that U.S. commodity prices rose more than expected.
This development led markets to scale back expectations for interest rate cuts this year,
with investors now predicting only one rate cut by December.
Despite rising U.S. Treasury yields, which typically pressure gold prices,
ongoing concerns over trade policies have supported demand for the precious metal.

Federal Reserve Policies

Investors closely monitored statements from Federal Reserve Chairman Jerome Powell,
who emphasized that interest rate decisions would depend on economic data developments.
He noted that the U.S. economy is approaching its inflation target but has not yet reached it,
increasing the likelihood of maintaining a tight monetary policy for an extended period.

Record Levels

Gold has recorded strong gains this year, reaching consecutive all-time highs amid growing uncertainty about the future of the U.S. economy and monetary policies.
Analysts expect gold to test the $3,000 per ounce threshold soon,
especially as concerns persist regarding the impact of trade and immigration policies on inflation and economic growth.

Market Movements

Gold’s recent surge has been accompanied by significant inflows into gold-backed exchange-traded funds (ETFs),
with global holdings increasing by more than 1% since the start of the year,
reaching their highest levels since November, according to Bloomberg data.

As of 8:07 AM in Singapore, spot gold rose 0.1% to $2,907.63 per ounce, after reaching a record high of $2,942.68 on Tuesday.
Meanwhile, the Bloomberg Dollar Index remained stable, silver and palladium prices increased,
and platinum prices remained unchanged.

Gold Above $2900 Amid Interest Rate and Trade Pressures

Gold Above $2900 Amid Interest Rate and Trade Pressures

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