Gold prices surged to a new all-time high on Monday, driven by US President Donald Trump’s announcement of tariffs on steel and aluminum imports. The metal climbed to $2,911.72 an ounce, advancing 2.2% last week.
Trump stated that 25% levies will be applied to steel and aluminum from all countries, sparking uncertainty in global financial markets. However, analysts see the move as a boon for gold, which is often seen as a safe-haven asset during times of economic uncertainty.
“Gold remains in a sweet spot,” said Westpac Banking Corp. analyst Richard Franulovich. “Trump’s unpredictability and tariffs threats on allies and adversaries are boosting demand for haven assets.”
The Federal Reserve Chair Jerome Powell’s semiannual testimony to lawmakers will also be closely watched for clues about the path forward for US monetary policy. However, analysts believe that Powell’s emphasis on a resilient economy may limit the potential for interest rate cuts.
Despite this, investors remain attracted to gold as a store of value in uncertain times. China’s central bank expanded its gold reserves for a third month, and Asia’s largest economy announced a pilot program to invest in bullion for the first time.
Source: https://finance.yahoo.com/news/gold-edges-higher-toward-record-001011235.html