Economy Report – Baghdad
Gold prices experienced a decline on Monday as traders capitalized on recent high levels of the precious metal. This movement comes as the market prepares for an important inflation report from the United States, set to be released later this week.
The price of gold in spot transactions dropped by 0.4 percent, reaching $2,925.63 per ounce as of 02:04 GMT.
On the previous Thursday, gold reached an all-time high of $2,954.69.
Gold futures in the United States fell by 0.5 percent, settling at $2,939.30.
Market analysts noted that “gold was unable to capitalize on the prevailing trend of risk aversion, as profit-taking maneuvers offset any increase in demand for safe haven assets.”
Last week, U.S. President Donald Trump announced plans to impose new customs duties, expanding previous fee proposals to include wood and forest products along with already established tariffs on imported vehicles, semiconductors, and pharmaceuticals.
This announcement follows a 10% additional tax on Chinese imports as well as existing tariffs of 25% on steel and aluminum.
Traders are closely monitoring the interest rates enacted by the U.S. Federal Reserve for any signs of inflationary trends stemming from Trump’s policies.
If these inflationary pressures compel the Federal Reserve to raise interest rates, the appeal of gold as a non-yielding asset may wane.
In related markets, silver in spot transactions declined by 0.4 percent to $32.42 per ounce, while platinum fell by 0.2 percent to $967.71 and palladium dropped by 0.3 percent to $965.97.
For more timely updates, consider subscribing to our channel on Tilekram.
