Gold is trading near record highs, showing strength driven by a combination of factors including expectations of Federal Reserve interest rate cuts and increased safe-haven demand due to geopolitical tensions. The precious metal is on track for its third consecutive weekly gain.
- Gold traded around $3,030 per ounce.
- The Federal Reserve acknowledged rising economic uncertainty and reaffirmed plans for two rate cuts this year.
- Fed Chair Powell downplayed President Trump’s tariff impact on inflation.
- Tensions are escalating in the Middle East, with continued conflicts in Gaza and Yemen.
- Markets are bracing for Trump’s reciprocal tariffs, adding to global trade concerns.
- Gold has gained more than 15% since the start of the year.
The combination of economic uncertainty, the anticipation of lower interest rates, and ongoing geopolitical instability provides a supportive environment for gold. The potential for trade wars further exacerbates the situation, increasing its appeal as a safe haven. These factors may continue to push prices higher in the short term.