Gold Prices Hit Record High Amid Rising Tariff Concerns
Gold prices soared to unprecedented levels as investors turned to safe-haven assets amid escalating tariff threats from US President Donald Trump. According to Bloomberg, gold surged by 0.2% to $2,799.65 an ounce, surpassing the previous record set in October.
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This leap in gold value followed Trump’s declaration to impose 25% tariffs on imports from Canada and Mexico starting February 1, coupled with potential tariffs on China, causing market anxieties about a global trade war. These uncertainties have significantly contributed to the precious metal’s upward trajectory, marking its fifth consecutive weekly gain.
Furthermore, the broader implications of such tariffs on the US economy, including possible inflationary pressures and fiscal challenges, have kept the Federal Reserve in a cautious stance. Federal Reserve Chair Jerome Powell highlighted a ‘wait-and-see’ approach regarding the new administration’s policies, aligning with the Federal Open Market Committee’s decision to maintain unchanged interest rates.
The economic community also eagerly anticipates further data release, such as the personal consumption expenditures index, which economists predict will reflect a slight uptick in prices. Amid these developments, the Bloomberg Dollar Spot Index experienced a marginal rise by 0.1%, with silver, palladium, and platinum remaining stable.
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