Moreover, concern about economic growth as a result of American trade policy have fueled the demand for Safe-Haven Assets. President Donald Trump’s rates about Canadian, Mexican and Chinese goods have stood up the fear of slower world trade and pushed investors into gold.
Silver climbs in the midst of inflation and geopolitical uncertainty
Silver (XAG/USD) also saw profits, in which he was traded around $ 31.23, after reaching an intra-day high point of $ 31.41. The rally was powered by a weaker dollar and increasing the demand for safe haven because geopolitical risks remain increased.
The US Bureau of Economic Analysis reported that the price index of the personal consumption expenditure (PCE) increased by 0.3% in January, while the core -PCE inflation in December from 2.9% delayed to 2.9%. The report, combined with a decrease of 0.2% in consumer spending, the biggest decrease of four years, has more concern about slowing down economic growth – a bullish signal for both gold and silver.
Gold & Silver respond to trade tensions – what is the following?
Markets are braced for further uncertainty as American trade policy escalates. Trump’s plan to increase rates on Canadian and Mexican import from Tuesday, on top of the existing 10% tasks on Chinese goods, has increased the fears of the trade war.
In the meantime, China is considering retaliation measures, which may be aimed at American agricultural and food products. The rising uncertainty continues to push investors into precious metals, which strengthens the profession of gold and silver.
Investors are now looking closely in the US economic reports, including the ISM Manufacturing PMI and the non -agricultural wage report report that could influence the dollar, interest expectations and precious metal prices in the coming days.