The gold market experienced a surge to an all-time high of $4,070 per ounce driven by a confluence of factors including renewed US-China trade tensions, economic uncertainty, and geopolitical developments. The market is also anticipating further interest rate cuts by the Federal Reserve.
- Gold reached an all-time high of $4,070 per ounce.
- Renewed US-China trade concerns boosted safe-haven demand.
- President Trump threatened extra levies on Chinese exports, then softened his stance.
- Beijing defended its rare earth export curbs and warned of countermeasures.
- The US government shutdown added to market jitters.
- Traders expect the Federal Reserve to deliver additional rate cuts.
- Trump announced the Gaza war has ended.
The price of gold is sensitive to geopolitical events, trade relationships, and monetary policy. Fluctuations in these areas have a significant impact on gold. Escalating trade disputes and economic instability tend to drive investors towards safe-haven assets like gold, leading to price increases. Expectations of lower interest rates can further support the price.