Gold experienced a significant price surge, reaching a new record high. This upward movement is attributed to investor demand for safe-haven assets amid growing global economic and political uncertainties. Speculation regarding further monetary easing by the US Federal Reserve also contributed to the price increase.
- Gold prices climbed to around $4,190 per ounce.
- Investors sought the metal’s safety due to market anxiety.
- Bets of additional US monetary easing increased.
- President Trump accused China of “economically hostile” behavior.
- A US official said the US government shutdown is beginning to weigh on the economy.
- Fed Chair Jerome Powell warned that the sharp slowdown in hiring is increasingly threatening the US economy.
- Powell hinted at the possibility of two more rate cuts this year.
The prevailing market conditions suggest a positive outlook for gold. Escalating trade tensions between the US and China, coupled with domestic economic concerns within the US, are creating an environment of uncertainty. This uncertainty is driving investors towards gold as a safe store of value, further bolstering its price. The prospect of further interest rate cuts adds additional upward pressure on prices, as lower rates typically make non-yielding assets like gold more attractive.