Economic Update – Baghdad
Gold prices continued to ascend on Tuesday, driven by uncertainty surrounding U.S. President Donald Trump’s trade policy, which has fueled safe-haven demand amid concerns of a potential global trade war.
The price of gold rose by 0.2 percent in immediate transactions, reaching $2,903.56 per ounce as of 03:01 GMT. Meanwhile, U.S. gold futures increased by 0.6 percent to $2,916.80 per ounce.
A report from Capital Kom indicated that “we appear to be witnessing significant purchases from central banks, alongside a noticeable uptick in demand in the United States as investors rush to acquire gold to sidestep potential customs tariffs.”
Last Friday, President Trump announced that he instructed his team to explore customs duties on all countries that impose tariffs on U.S. goods.
In his tenure, Trump has already implemented a 10% tariff on Chinese imports, alongside plans for a 25% tariff on Mexican goods and energy-related imports from Canada. Additionally, a 25% tariff on aluminum and steel imports is scheduled, with further tariffs on countries imposing taxes on American imports in progress.
Later today, two officials from the FBI are set to provide their insights into the trajectory of monetary policy.
In a notable market forecast, Goldman Sachs has raised its price prediction for gold to $3,100 per ounce by the end of 2025, up from a previous estimate of $2,890, highlighting increased demand from central banks as a key driver.
In contrast, silver prices decreased by 1.5 percent to $32.30 per ounce in immediate trading, while platinum saw a rise of 0.7 percent to $981.86, and palladium increased by 1.3 percent to $974.75 per ounce.
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