Gold is experiencing a strong upward trend, hovering above $3,110 per ounce and on track for its fifth consecutive weekly gain. This surge is primarily fueled by risk aversion due to recently announced US tariffs and subsequent countermeasures from other nations. While profit-taking and initial reports of precious metals being excluded from tariffs caused a temporary pullback, overall momentum remains positive, driven by safe-haven demand, anticipated rate cuts, central bank purchases, and robust investment in gold-backed ETFs. Investors are now closely watching the US non-farm payrolls report for clues regarding future Federal Reserve monetary policy.
- Gold is poised for its fifth consecutive weekly gain, trading above $3,110 per ounce.
- The surge is driven by risk aversion linked to US tariffs and retaliatory measures from other countries.
- Gold experienced a temporary pullback due to profit-taking and initial reports that precious metals were excluded from US tariffs.
- Underlying support for gold includes safe-haven demand, expectations of rate cuts, central bank buying, and strong demand for gold-backed ETFs.
- Investors are awaiting the US non-farm payrolls report for insights into the Federal Reserve’s monetary policy.
The current environment is highly favorable for gold. The ongoing trade tensions are creating uncertainty, prompting investors to seek safe-haven assets. Furthermore, expectations of lower interest rates make gold more attractive relative to interest-bearing investments. Central banks adding to their gold reserves and strong demand from exchange-traded funds further bolster the price. The upcoming employment data will be crucial in shaping expectations about the Federal Reserve’s next move, which could further influence the direction of gold prices.