Gold prices experienced an increase, halting a previous two-day decline. Investors are assessing trade developments and geopolitical tensions which are contributing to the metal’s safe-haven appeal. Expectations of further rate cuts by the Federal Reserve are also lending support. Despite this, the price is still below its recent high, reflecting profit-taking after record highs and recent significant weekly losses.
- Gold prices rose to around $4,120 per ounce.
- The rise halted a two-day decline.
- Investors are weighing trade developments and geopolitical tensions.
- US is considering export restrictions on China.
- Trump plans to meet with Chinese President Xi Jinping.
- Washington announced fresh sanctions on Russia.
- A Trump-Putin summit was postponed after Moscow rejected a Ukraine ceasefire.
- Expectations are that the Federal Reserve will deliver two more rate cuts by year-end.
- Gold remained about 6% below its recent peak.
- Steepest weekly loss in over five years occurred earlier this week.
The rise in price reflects investor reaction to external economic and political factors. Uncertainty regarding trade relationships between major economies and escalating geopolitical issues appear to drive demand for this asset as a safe store of value. Future monetary policy is also influencing the market, but recent profit-taking suggests a degree of caution among investors following previous peaks.