Gold prices have reached their highest intraday level since early November, with the precious metal trading at approximately $2,754 per ounce. This comes on the heels of U.S. President Donald Trump's recent comments on trade and immigration policies, fueling demand for gold as a safe-haven asset.
The 1.4% surge in gold prices during the previous session was largely attributed to Trump's suggestion of a potential 10% tariff on Chinese goods. The move is reportedly in response to the inflow of fentanyl from China. Furthermore, Trump reaffirmed plans to impose import duties of up to 25% on Canada and Mexico in the near future, adding to market uncertainties.
Investors are paying close attention to how the administration's tariff and tax policies might strain the U.S. fiscal position and drive inflation higher. These developments could restrict the Federal Reserve's ability to maintain its current accommodating monetary stance. Since gold does not generate interest, rising borrowing costs typically reduce its appeal, but the current conditions are working in favor of the precious metal.
Gold has achieved several highs in 2024, buoyed by:
The metal's upward trend could persist as demand for safe-haven assets remains strong amid ongoing apprehensions about U.S. immigration policies and potential foreign relations tensions.
At 6:12 a.m. in London, spot gold edged up 0.3% to $2,754.04 per ounce.
Gold's surge to an 11-week high highlights its enduring value as a safe-haven asset in times of economic and geopolitical uncertainty. With evolving trade policies and market volatility, staying informed and equipped to navigate these changes is crucial for investors.
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