With the 50 -day advancing average trending up at $ 2,782.12, gold remains well supported, which strengthens a “buy the dip” strategy in traders.
At 13:13 GMT, XAU/USD $ 2925.79, an increase of $ 32.81 or +1.13%.
The demand for safe haven increases as the trade war escalates
Gold benefits from increased in the safe haven while the tensions of global trade escalate. President Donald Trump’s newly imposed rates on Canada, Mexico and China have led to fears of economic instability. The US has a duty of 25% on Mexican and Canadian input and doubles the rates for Chinese goods to 20%. In response, China has announced retaliatory harefs of 10% to 15% on selected American import, including agricultural products.
Market analysts see this as an important risk factor that pushes investors to gold like a hedge. “With Trump 2.0, who delivers exactly the chaos that he promised, Western investors join central banks in emerging markets when buying gold as a hedge for all weather conditions,” said Adrian Ash, head research at Bullionvault.