Gold is experiencing a price surge, reaching over $5,100 per ounce, driven by renewed trade war anxieties, geopolitical tensions in the Middle East, and a weaker US dollar. Safe-haven demand is bolstering the precious metal as investors seek refuge from economic uncertainty.
- Gold climbed 1% to around $5,160 per ounce, a three-week high.
- New global tariffs announced by US President Trump are fueling trade war concerns.
- Europe is considering halting ratification of a trade deal with the US, and India postponed trade negotiations.
- Geopolitical tensions, particularly the potential for a US military strike on Iran, are contributing to safe-haven demand.
- The US Personal Consumption Expenditures (PCE) Price Index increased, suggesting the Fed may not cut rates as aggressively as some expect.
- A weak US GDP print and ongoing US government shutdown are weighing on the US Dollar.
The combination of trade uncertainties, geopolitical risks, and a comparatively weaker dollar creates a favorable environment for gold. These factors support gold as a safe-haven asset, drawing investors seeking to mitigate risk during times of economic and political instability. The potential for further escalation of these situations suggests that gold may continue to see increased demand and price appreciation.