Gold prices rose to a record level – today, Thursday – with investors’ demand for a precious metal as a safe haven, amid fears of US President Donald Trump’s plans on customs duties, which may exacerbate inflation and ignite a global trade war.
The yellow metal rose in instant transactions 0.73% to $ 2954.84 an ounce – in the latest transactions – is the highest level ever.
Gold rose 12.6% since the beginning of the year, and a new record for the tenth time was due to concerns about American customs duties.
US gold futures increased 1.19% to $ 2970.90, in the latest transactions.
Coordinated expectations
“The foggy expectations of global trade and inflation are proven that it is favorable to gold and pays it towards the level of $ 3000,” said Tim Water, Sigar Market Zoulouette at KCM
Since his inauguration, Trump imposed 10% customs definitions on Chinese imports and 25% on steel and aluminum earlier this month, and he said yesterday that he intends to impose customs duties linked to wood, cars, semi -conductors and medicines “next month or before.”
A report of the latest policy meeting of the Federal Reserve (US Central Bank), which was published yesterday, showed that the initial procedures proposed by Trump raised concern about the high inflation, and supported the continued temporary stoppage to reduce interest rates.
The US Central Bank remained in standard interest rates in the range of 4.25% – 4.50% at its meeting last month.
Reducing
Officials have since confirmed that they are not in a hurry to reduce interest rates again, so that they become more certain that inflation will decrease towards the target rate at 2%.
Gold is usually seen as a way to hedge against inflation and in times of geopolitical risks, but high interest rates reduce the attractiveness of the metal that does not generate returns.
It is noteworthy that the American Goldman Sachs group raised the goal of gold prices at the end of the year to $ 3100 an ounce, against the backdrop of the purchase of central banks and flows to alloys -backed trading boxes, highlighting the Hamas Wall Street of the precious metal.
As for other precious metals:
- Silver in instant transactions increased 1.05% to $ 33.04 an ounce
- Platinum fell 0.1% to 977.45 dollars an ounce
- Palladium rose 1.53% to $ 984.5 an ounce, in the latest transactions.
