Gold Prices Surge Amid Trade Tensions
Gold prices are approaching their recent highs this Thursday, largely driven by escalating trade tensions stemming from U.S. President Donald Trump’s policies.
Following the opening of Asian markets, gold was trading at approximately $2,870 per ounce, with expectations for it to rise to $2,880 per ounce.
“Investors are keen to capitalize on the potential rise of gold prices and are reluctant to offload their existing holdings, especially as gold continues to establish new price levels on a daily basis,” commented Sony Republic, an analyst at ANZ.
Republic posits that gold prices could soon reach $3,000, though temporary pullbacks may occur, particularly if indications of a de-escalation in the trade conflict emerge.
China has filed a complaint against the U.S. concerning a 10 percent tariff, to which it has retaliated by imposing tariffs on various American goods.
In spite of these ongoing trade disputes, upcoming U.S. labor market statistics, set to be released today and tomorrow, could significantly impact gold prices and indirectly influence the monetary policy direction of the U.S. central bank.
