Gold prices experienced an upward correction after recently hitting a near four-week low. This rebound is attributed to heightened concerns about a potential global recession triggered by an escalating trade war. Investors are closely monitoring upcoming economic data releases and Federal Reserve meeting minutes for signals regarding future monetary policy. Despite recent dips, gold has maintained a strong performance year-to-date.
- Gold rose above $2,995 per ounce on Tuesday.
- The rise is a rebound from a near four-week low hit in the prior session.
- Haven demand is driven by concerns that an escalating trade war could trigger a global recession.
- President Trump threatened to impose an additional 50% duty on China.
- The EU proposed counter-tariffs of 25% on a range of U.S. goods.
- The minutes from the Federal Reserve’s latest policy meeting are due Wednesday.
- Consumer inflation data is due Thursday and the producer price report is due Friday.
- Bullion remains strong and is up more than 14% year-to-date.
This suggests that gold is currently perceived as a safe-haven asset, attracting investors seeking to mitigate risks associated with global economic uncertainty. The potential for further gains hinges on the trajectory of the trade war and the Federal Reserve’s monetary policy decisions. The strong year-to-date performance indicates a continued interest in gold as a store of value.