Gold is trading near $2,940 per ounce, close to record highs, supported by rising global trade tensions that are boosting safe-haven demand. Weaker-than-expected US inflation data has further influenced the market, suggesting potential for a less restrictive monetary policy by the Federal Reserve. However, the delayed impact of existing tariffs and the possibility of rising inflation present uncertainties.
- Gold held near $2,940 per ounce.
- Escalating global trade tensions fuel safe-haven demand.
- President Trump warned of additional tariffs on EU goods.
- Trump might impose trade protections on copper.
- US inflation came in below expectations.
- Lower inflation gives the Federal Reserve more flexibility.
- The impact of tariffs has yet to materialize.
- Inflation could rise again in the coming months.
The current environment suggests a favorable outlook for gold in the short term, with trade uncertainties and subdued inflation figures providing upward momentum. However, potential shifts in inflation and the eventual realization of tariff impacts could introduce volatility, requiring careful monitoring of economic data and geopolitical developments.