Gold Holds Above $2,900 Amid Rate & Trade Tensions: Gold prices remained near record levels as traders balanced
rising inflation in the United States with increased demand for safe-haven
assets amid escalating trade tensions following new tariffs imposed by U.S. President Donald Trump.

Contents

Rising U.S. Commodity Prices

Gold Could Test the $3,000 Barrier Soon

Strong Inflows into Gold-Backed Funds

Latest Market Moves

Rising U.S. Commodity Prices

Gold traded above $2,900 per ounce after a Wednesday report revealed that
U.S. commodity prices had risen more than expected, leading traders to price in only one interest rate cut by December.
Treasury yields also climbed, increasing pressure on the non-yielding precious metal.
This caused a 1.2% drop before rebounding as market concerns
over Trump’s aggressive trade policies boosted gold buying as a safe-haven asset.

At the same time, investors monitored statements from Federal Reserve Chairman Jerome Powell,
who told lawmakers on Wednesday that the central bank
would base its interest rate decisions on economic developments.
He added that the latest data shows the economy is nearing the inflation target but has not yet reached it.
On Tuesday, Powell reiterated before the Senate that the Fed would exercise patience before further easing monetary policy.

Gold Could Test the $3,000 Barrier Soon

Gold has seen substantial gains this year, reaching consecutive record highs,
and may soon test the $3,000 per ounce mark.
This surge is driven by growing demand for safe-haven assets
amid rising uncertainty about the U.S. economy and monetary policy.
Investors are evaluating whether the new U.S. administration’s policies
on trade and immigration could reignite inflation and impact economic growth.

Strong Inflows into Gold-Backed Funds

The latest rally in gold has been accompanied by significant inflows into gold-backed exchange-traded funds (ETFs).
According to Bloomberg calculations, global holdings have risen by more than 1% this year,
reaching their highest levels since November.

Latest Market Moves

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

Gold Holds Above $2,900 Amid Rate & Trade Tensions

Gold Holds Above $2,900 Amid Rate &#038; Trade Tensions

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Gold Holds Above $2,900 Amid Rate & Trade Tensions