At 12:38 GMT, XAU/USD $ 2941.55, an increase of $ 10.29 or +0.35%.
Trump -rate threats wrapping market anxiety
Trump’s announcement of potential new rates for wood, cars, semiconductors and pharmaceutical products has triggered the fear of a global trade war. The aggressive position of the president, including previous rates of 10% on Chinese input and 25% on steel and aluminum, could increase import costs and ignite broader inflation. As the inflation erodes the value of Fiat -currencies, investors often turn to gold as a store of value, which makes prices higher.
Fed retains rates when inflation increases risks
Minutes of the meeting of the Federal Open Market Committee (FOMC) from 28-29 January revealed the cautious approach to the FED, making the benchmark interest stable between 4.25% and 4.5%. The FED underlined the risk that Trump’s economic policy could undermine the efforts. With the Central Bank that prioritizing stability, its restraint to rates can reduce the appeal of interest-bearing assets, making the non-yield of gold a more attractive option for investors.
Markt responds to potential quantitative tightening break
The internal discussions of the FED about the possible pause of its quantitative tightening (QT) program reflect the growing concerns about the liquidity of the market. Halt in QT can slow down the reduction of market liquidity, which supports historically higher gold prices. As liquidity risks and challenges for debt management of the treasury dive, the role of Gold gets as a safe port of assets among traders.
Gold price forecast: Bullish bias as traders eye $ 3,000
The Bullish Momentum of Gold remains intact, with the level of $ 3,000 now an important psychological target. Although technically overhead, the resilience of the metal suggests a strong underlying question.
Traders must check for a closing price -rise stop, which can indicate a short -term withdrawal, with support for $ 2,864.33. However, persistent inflation problems and tariff -controlled volatility will probably keep gold in favor.