Economy News – Update
Gold prices experienced a modest increase on Monday, supported by a weakening dollar and heightened demand for safe-haven assets amid growing concerns over a potential global trade conflict.
In immediate trading, gold rose 0.1 percent to $2,912.79 per ounce as of 02:43 GMT, while US gold futures jumped 0.2 percent to $2,919.40.
The dollar index remains near its lowest level in four months, observed last week, rendering gold more affordable for international buyers.
According to a financial market analyst at Capital.com, “The increasing risks to economic growth, alongside the uncertainty around American foreign policy, are enhancing gold’s appeal.” He further expressed confidence that, “the $3,000 per ounce mark for gold is likely to be breached soon, potentially within the next two months.”
US President Donald Trump has refrained from speculating whether the country is facing a recession, amid stock market unease regarding his administration’s customs policies toward Mexico, Canada, and China concerning fentanyl.
The fluctuating nature of customs duties has sent ripples through Wall Street, with investors indicating that the erratic actions of the Trump administration regarding trade tariffs have caused confusion rather than providing reassurance.
Last Tuesday, Trump implemented a new 25% tariff on imports from Mexico and Canada, alongside additional tariffs on Chinese goods.
Subsequently, he exempted various imports from Mexico and some from Canada from these tariffs for a month, contributing to market uncertainty and raising concerns over inflation and economic growth in the United States.
Investors are particularly alarmed by the impact of these tariffs, believing they could stifle economic growth and potentially lead to inflationary pressures.
In related market movements, silver in immediate trades declined by 0.3 percent to $32.42 per ounce, platinum settled at $962.55, and palladium saw a decrease of 0.4 percent, settling at $944.73.
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