Gold prices are hovering above $2,980 per ounce, a record high, and on track for a weekly gain exceeding 2%. Risk aversion due to global trade tensions and growing anticipation of Federal Reserve rate cuts are key factors driving the surge. Strong ETF demand and sustained central bank purchases further bolster gold’s appeal.
- Gold hovered above $2,980 per ounce.
- Gold is poised for an over 2% weekly gain.
- The price increase is driven by risk aversion and expectations of Federal Reserve rate cuts.
- President Trump warned of a 200% tariff on European wine and other alcoholic beverages.
- Recent PPI and CPI data signaled easing price pressures in February.
- Strong ETF demand supports the metal.
- Central bank buying is sustained.
- China extended its gold purchases for a fourth consecutive month in February.
The current market conditions suggest a strong outlook for gold. Escalating trade wars and the potential for lower interest rates enhance its attractiveness as a safe-haven asset. Continued buying from major financial institutions and central banks signals confidence in its long-term value. Easing inflation allows the Federal Reserve the flexibility to lower interest rates, further boosting demand for gold.