Gold reaches new high amid Trump’s tariff fears and weak inflation report
Trending Articles- Silver Price Forecast: Trump Signals Rapid Progress in US-Iran Negotiations, Bulls Target $90
- Gold declines below $4,500 as Iran tensions stoke inflation fears and bolster Fed hike bets
- Fed’s Powell says credibility lost if President can fire officials
- $1.5 Billion in Crypto Assets Liquidated, Bitcoin Falls Below $66,000 Mark. What Is the Reason?
- Bitcoin Suffers Year’s Strongest Waterfall-Style Decline. Will It Next Drop to the $60,000 Mark?
- WTI rises to near $93.00 as Iran launches missiles toward Kuwait, Bahrain
Gold soared to a record $2,990.21 an ounce on Friday, surpassing highs set earlier in the week, as President Donald Trump’s tariff threats and weak inflation data drove investors toward safe investments.
The precious metal’s rally was fueled by US data which showed stagnation in wholesale inflation in February, reinforcing prospects for an eased monetary policy by the Fed.
Lower borrowing costs typically benefit gold because it offers no yield of its own. Meanwhile, US government debt attracted heavy demand, pushing 10- and 30-year Treasury yields to fresh monthly peaks.
Concerns over American growth also took a toll on equities, as the S&P 500 slipped into a 10% correction on Thursday, erasing about $5 trillion in market value since its February peak.
Trump’s vow to hit European wine and related products with a 200% tariff added to investor anxiety, alongside his refusal to remove newly imposed steel and aluminum tariffs or back down on reciprocal tariffs slated for April 2.
Overall, Banks have become bullish on gold. The Macquarie Group predicted that its prejudice could surge up to $3,500 per ounce in the 2nd quarter. BNP Paribas SA expects that the average price of gold will remain above $3,000.
Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
