Economy Insights – Baghdad
Gold prices experienced an uptick today, fueled by a weaker dollar. Ongoing tensions regarding peace negotiations in Ukraine, coupled with concerns over U.S. customs duties policy, are driving demand for the metal as a safe haven asset.
In early trading, gold prices rose 0.3 percent to $286.76 per ounce as of 03:03 GMT.
Gold futures in the United States also saw an increase of 1.1 percent, reaching $2,880.50.
The recent fluctuations saw gold prices drop 0.4% from the highest level observed in over two weeks during the previous trading session, making it more affordable for investors using other currencies.
“The initial rise in gold prices across Asia today is likely attributed to geopolitical uncertainties arising from a stalled peace agreement between Ukraine and Russia,” observed analysts.
Compounding this uncertainty was the recent meeting between Ukrainian President Volodymyr Zelenskiy and U.S. President Donald Trump, which ended without resolution, further shaking already volatile financial markets impacted by weak economic data and inconsistencies in American trade policies.
On Sunday, U.S. Trade Minister Howard Lootnik announced that customs duties on imports from Canada and Mexico are set to take effect on Tuesday, although President Trump will ultimately determine whether to implement the proposed 25% rate.
In other precious metals, platinum saw a decrease of 0.2% to $945.45 per ounce, while palladium rose by 1% to $928.54 per ounce.
Additionally, silver showed gains in early trading, climbing 0.5% to $31.30 per ounce.
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