English
Gold rises amid global trade fears.
Gold Prices Rise Amid Escalating Trade Concerns and Await Key U.S. Inflation Data
Global gold prices continued to rise during Thursday's trading, driven by growing economic concerns and escalating global trade tensions, as U.S. President Donald Trump plans to impose new tariffs. Investors are closely monitoring upcoming U.S. economic data, which could significantly impact financial market trends.
Trump reaffirmed his intention to impose reciprocal tariffs on countries that tax U.S. imports, further fueling concerns about inflation in the United States and boosting demand for gold as a safe-haven asset amid ongoing market volatility.
Shady Abdo, a strategic analyst at Point Trader Group, stated: "Gold continues to play a key role as a hedge against market uncertainty, with investors diversifying their portfolios to mitigate risks."
Gold prices had declined by more than 1% on Wednesday following the release of data showing a higher-than-expected increase in the Consumer Price Index (CPI) in the U.S. This reinforced expectations that U.S. interest rates would remain high for an extended period. However, gold rebounded as economic uncertainty persisted.
Investors are now awaiting the release of the Producer Price Index (PPI) data today at 4:30 PM KSA time, which could provide further insights into the direction of U.S. monetary policy and inflation trends.
In his testimony before the U.S. Congress, Federal Reserve Chairman Jerome Powell emphasized that the central bank’s battle against inflation is not over yet. He indicated that any potential interest rate cuts would remain on hold until inflation stabilizes at the 2% target level.
Gold remains a preferred safe-haven asset against inflation; however, the persistence of high interest rates may limit its appeal. As a result, Federal Reserve decisions and upcoming economic data will be crucial in shaping gold price trends in the near future.
