Gold Surges to Multi-Month High Amidst Global Economic Uncertainty
Gold prices soared to their highest intraday level since October following a surge in tariff threats from US President Donald Trump. Amidst concerns over trade and immigration policies, investors closely monitor the global economic outlook.
Trump's expanded tariff threats target China, the European Union, and potentially Canada and Mexico. Investors grapple with the potential impacts of the Trump administration's tariff and tax policies, which economists warn could fuel inflation and restrict the Federal Reserve's monetary easing capabilities. Rising borrowing costs typically hinder gold demand as it offers no interest payments.
Despite the headwinds, gold set multiple records last year, driven by Fed rate cuts, geopolitical tensions, and central bank purchases. The precious metal could potentially benefit from rising demand for safe-haven assets fueled by concerns over Trump's immigration policies and escalating US tensions with other nations.
Spot gold witnessed a 0.5% increase to $2,757.10 per ounce in New York. Meanwhile, the Bloomberg Dollar Spot Index remained largely stable. Silver prices marginally declined, while platinum and palladium saw gains.