Gold prices returned to rise today after investors were buying after the yellow metal fell to the lowest level in about 4 weeks in the last session, amid increasing fluctuations in the market and an escalating trade war.
In the latest transactions, gold rose in immediate transactions 0.88% to 3008.62 dollars an ounce, and yesterday, the gold prices fell to its lowest level since March 13.
In today’s dealings, American gold futures increased 1.6% to $ 3021.30.
Threats
US President Donald Trump has escalated his threats to impose customs duties on China on Monday, while the European Union has made plans to impose counter -fees, which has exacerbated fears of a long -term trade war that could push the global economy to recession.
“Despite the decline in previous sessions, gold is still strong and is expected to remain in the upward direction,” said Gigar Trevidy.
Gold increased by about 15% this year, driven by strong purchases on the part of central banks and its attractiveness in general, as it is a hedge in light of the economic and geopolitical uncertainty.
Trump said he was not thinking of temporarily stopping customs duties to facilitate negotiations with commercial partners, but he stated that he would have discussions with China, Japan and other countries on the fees.
The markets are awaiting the recent monetary policy meeting of the Federal Reserve (US Central Bank), which is scheduled to be issued tomorrow, Wednesday.
Traders are also awaiting the US consumer price index data, issued on Thursday, and the producers’ price index on Friday to obtain indicators on the American interest rate path, and gold tends to rise under low interest rates.
As for other precious metals, its performance was as follows:
- Silver in instant transactions increased 2.3% to $ 30.23 an ounce.
- Platinum increased 1% to 925.42 dollars.
- Palladium rose 1.1% to 922 dollars.
Currency
The safe haven, Elaine and the Swiss franc, settled near their highest levels in 6 months, while the dollar incurred great losses, as the recession exacerbates the financial markets after the comprehensive American customs duties.
Currency markets are witnessing fragile stability in Asian transactions after fluctuations during the past twenty -four hours, as the dollar compensated some of its heavy losses against the safe haven currencies while traders were establishing developments.
In the currency markets, investors came to the Swiss yen and franc during the past week in search of a safe haven from market turmoil.
The yen recorded an increase of 0.64% to 146.93 against the dollar to approach the highest level in about 6 months at 144.82 for the dollar, which he touched on Friday, and the Swiss franc in the latest trading reached 0.8546 against the dollar, also approaching from its highest level in 6 months that he touched in the last session.
The dollar is usually seen as one of the origins of safe haven, but that position appears to decline with the increasing fog for customs duties, which raises fears of the stumbling of American economic growth.
The euro rose 0.58% to $ 1.0967, near its highest level in 6 months that he recorded last week, and the pound sterling rose 0.4% to $ 1.2776 and moved away from its lowest level in a month that he recorded in the last session.
“The current fluctuations are completely resulting from the Trump administration’s political options, which means that if it is changed, it is likely that the impact on financial markets is also reflected,” said Nathan Lim, head of the investment sector in Lonsick Investment Soloshs. Nathan Lim.
Investors are betting that the increasing risk of economic slowdown may lead to a reduction in US interest rates in May, and the dollar will decline in light of the continuation of cash facilitation this year.
The dollar index, which measures the performance of the US currency against six main currencies, has decreased 0.1% in the latest transactions, and the index fell by more than 1% since the declaration of customs duties.
The Australian and New Zealand dollars fell against their American counterpart during the past week, but they rose today.
The yuan also fell to its lowest level since 2023 after the central bank reduced its grip slightly on the currency, while analysts described it as an attempt to face a blow to exports as a result of the escalation of the trade war.
In emerging markets, the Indonesian rupee fell to a record low level with the resumption of trading after an official holiday.
James Ati, director of the fixed income sector at Marlu, said that there is optimism about the possibility of negotiating the reduction of customs duties, but indicated the continued risk.
He added: “The main economic data and the reactions of the central banks and negotiating customs duties will determine how this crisis ends. If the defense industry sector shares begin to decline strongly, this will indicate that we have moved to the stage of selling everything.”
Source : Reuters + CNBC + Websites
