Gold continued today, Wednesday, to record high levels supported by the demand for safe haven and geopolitical tension against the background of the renewal of the war on the Gaza Strip and the uncertainty about customs duties, while dealers are awaiting the decision of the Federal Reserve (US Central Bank) on monetary policy.
The price of gold rose to $ 3045.4 an ounce during the spot trading today before declining to $ 3029.6 in the latest transactions.
US gold futures rose to $ 3052.4 an ounce before declining to $ 3038.7.
Customs pressure
“Dealers look at gold as a good equipped to deal with the state of economic uncertainty associated with customs duties,” said Tim Water, a chief market analyst in KCM.
Investors are concerned about an economic slowdown and the increasing risk of recession due to the customs duties imposed by US President Donald Trump, which is widely believed to lead to increased inflation.
The customs duties laid commercial tension, and include fixed fees of 25% on steel and aluminum, which came into effect in February, and mutual drawings and on certain sectors to be imposed on April 2.
On the geopolitical level, Israel launched air strikes on Gaza, the Palestinian health authorities said that they had killed more than 400 people on Tuesday, which ended a relatively calm of two months since the ceasefire began, while Israel warned that the attack was “just the beginning.”
The price of gold, which is historically a means of hedging a geopolitical and economic uncertainty, has jumped more than 15% since the beginning of the year.
The US Central Bank is expected to keep the standard interest rate fixed at 4.25% -4.50% at the end of its two-day monetary policy meeting later in the day.
The market participants are also awaiting the letter of the bank’s president, Jerome Powell, after the interest rate decision to anticipate the American monetary policy track.
Gold, which does not generate returns back, increases the low interest rates.
On the level of other precious minerals:
- The price of silver in instant transactions fell 0.92% to $ 33.71 an ounce.
- Platinum fell 1.48% to 998.29 dollars.
- Palladium fell 0.87% to 960.07 dollars in the latest transactions.
