At 11:39 GMT, XAU/USD $ 2912.70, an increase of $ 14.21 or +0.49%.
Trump’s tariff movements stimulate the question of the gold
Gold’s power is fed by uncertainty about the aggressive trade policy of President Donald Trump. Since the return to his office, Trump has introduced and suggested new rates against further mutual measures against countries imposing tasks on American goods. This disruption of global trade is the setting up of economic care and steering investors to gold as a cover against uncertainty.
According to analysts from Commerzbank, the demand from the Central Bank continues to support gold, even in the absence of new purchase data. In addition, the increased risk-off sentiment remains well supported, whereby traders will be charged in the potential for more trade-related volatility in the coming months.
Fed Rate Cut speculation contributes to the power of Bullion
Investors also look at the upcoming minutes of the American Federal Reserve for insights into insights into future monetary policy. The market expectations for an acceleration of the FED in 2025 have been strengthened, especially after the weaker than expected American retail data last week. Lower interest rates tend to increase Gold’s appeal by reducing the opportunity costs from retention of non-return.
“Prize wines are also supported by growing expectations that the Fed will lower rates in 2025,” said Ricardo Evangelista, senior analyst at Activtrades. If rate-cut betting get further traction, this can offer an extra tail wind for gold prices.
Goldman Sachs increases golden price objective to $ 3,100
Goldman Sachs has raised its final price objective for gold to $ 3,100 per ounce, an increase in an earlier prediction of $ 2,890. The bank mentions the demand for “structurally higher” central bank and increased speculative positioning as important factors.