Economic Insights – Update
On Monday, gold prices experienced a decline following a peak that marked the highest level ever recorded during trading. The drop was influenced by concerns surrounding U.S. President Donald Trump’s proposed customs duties and the anticipation of an important inflation report set to be released later this week.
In immediate trading, gold fell by 0.09% to $2,937.30 per ounce, while futures decreased by 0.03% to $2,951.90.
Just last Thursday, the precious metal reached its record high of $2,954.69.
Concerns Over Customs Duties
Last week, President Trump announced that he plans to unveil new customs duties either next month or sooner, indicating that lumber will be included in his proposed tariffs which also encompass car imports, semiconductors, and pharmaceuticals.
This announcement follows the recent imposition of additional tariffs, including a 10% levy on Chinese imports and a 25% tariff on steel and aluminum.
Investors are keeping a close watch on the trajectory of interest rates in the United States. Many view Trump’s policies as potentially inflationary, and elevated inflation levels could prompt the Federal Reserve to maintain high interest rates, subsequently reducing gold’s appeal as a safe-haven asset.
Market attention is now focused on the personal consumption expenditures index, the Federal Reserve’s preferred gauge for measuring inflation, set to be released on Friday. This data will play a crucial role in shaping the future direction of U.S. monetary policy.
For more insights, subscribe to our channel on Tilekram
