Gold experienced a price increase towards $3,360 per ounce, reversing a recent decline. Lingering uncertainty surrounding US-China trade relations fueled demand for the precious metal as a safe-haven asset. Conflicting signals regarding tariffs and potential exemptions contributed to market volatility and investor interest in gold.
- Gold rose toward $3,360 per ounce on Thursday.
- The rise followed a two-day decline.
- Uncertainty over the US-China trade war sustained demand.
- Steep tariffs between the US and China need to be reduced for trade talks to advance.
- Trump plans to exempt carmakers from certain tariffs.
- Gold has risen over 30% since the start of the year.
- The gold-to-silver ratio reached its highest level since 1994, excluding the pandemic.
- Waning fears about undermining confidence in US exceptionalism are prompting a shift to gold.
The strengthening price reflects ongoing market anxieties. Trade tensions and fluctuating tariff policies appear to be driving investors toward perceived safe havens, thus boosting demand and price. The metal’s performance relative to silver, coupled with a broader trend of shifting investment strategies, suggests a potential loss of confidence in other assets and a continued preference for gold amidst economic and political volatility.