Gold Moves Higher Amid Safe Haven Demand
Markets analysis on behalf of Hassan Fawaz Chairman & Founder of GivTrade
Gold prices extended gains on Thursday, rebounding further from last week’s correction as safe-haven demand remained robust. Yesterday, the precious metal rose 3%, following President Donald Trump’s decision to raise tariffs on Chinese imports to 125%, intensifying tensions between the world’s two largest economies. While Washington introduced a temporary 90-day pause on tariffs for several countries, the tensions with Beijing could overshadow any signs of de-escalation.
The bullion also found support from growing expectations of slower economic growth. The latest FOMC minutes revealed broad agreement within the Federal Reserve about the risks of persistent inflation and weakening economic momentum. Amid these developments, investor focus turns to today’s CPI and tomorrow’s PPI data for clues on the Fed’s policy path. A softer inflation reading may support further gains in gold as it could raise expectations for a looser monetary policy.
