Gold prices are hovering near record levels, exceeding $2,980 per ounce, fueled by safe-haven demand and geopolitical uncertainties. Factors contributing to this surge include ongoing tensions in the Red Sea, concerns about escalating trade wars, consistent demand from ETFs, and continuous central bank purchases, particularly from China. Investors are also awaiting upcoming central bank policy meetings.
- Gold rose above $2,980 per ounce.
- Safe-haven demand is strong.
- Geopolitical risks related to U.S. strikes against Yemen’s Houthis support prices.
- Concerns about an escalating trade war between the U.S. and its trading partners boost appeal.
- ETFs are showing robust demand.
- Central banks are consistently purchasing gold.
- China has extended gold acquisitions for a fourth consecutive month.
- Investors are awaiting central bank policy meetings, including the U.S. Federal Reserve’s decision.
- The Fed is expected to keep rates on hold.
- There is uncertainty over President Trump’s economic policies.
This suggests a positive outlook for gold, at least in the short term. The confluence of geopolitical instability, trade war anxieties, and central bank activity creates a strong foundation for continued price support. However, the anticipated monetary policy decisions and their potential impact on the economy could introduce volatility and warrant close monitoring.