Trump Tariffs Strengthen Bull Case for Gold Amid Base Metal Sell-Off

JP Morgan has reaffirmed its bullish stance on gold, citing the recent escalation of the US-China tariff trade war as a catalyst. The bank maintains its near-term bearish outlook for base metals, attributing the downward pressure to growth concerns and macroeconomic risk-off sentiment.

LME (London Metal Exchange) base metal prices are expected to face significant near-term sell-off pressures due to these factors. The strengthening of the US dollar is also contributing to the decline in metal prices.

Gold prices have shown resilience so far, with the 5-minute candle chart displaying a bullish trend. This trend suggests that gold remains a safe-haven asset amidst global economic uncertainty, supporting JP Morgan’s bullish view on the precious metal.

Source: https://www.forexlive.com/news/jp-morgan-on-trump-tariffs-reinforce-their-bullish-view-on-gold-20250203