Kevin Hassett, a consultant at the US National Economic Council, pointed out that decreasing American treasury results in signal expectations from lower inflation, which further strengthens the Bullish prospects of Gold.
Despite the Federal Reserve that has maintained a ragless attitude towards the monetary policy, gold has traditional trends. Usually higher rates dampen Gold’s profession, but the risk-off sentiment of the market continues to support the rise in metal.
Geopolitical risks and rate of fears stimulate the demand for gold
In addition to economic data, geopolitical care and trade policy have fueled Gold’s demand. US President Donald Trump has suggested new mutual rates, in particular aimed at countries that impose trade barriers on the US imports.
The imminent threat of automatic rates by 2 April has intensified the fear of a worldwide trade war, which increases the attractiveness of Gold as a cover against uncertainty.
In the meantime, negotiations between the US and Russia have had little effect on the momentum of Gold with regard to the current conflict in Ukraine. The progress in peace talks can usually reduce the demand for a safe haven, but the market sentiment remains aimed at inflation trends and central banking policy instead of diplomatic developments.
Silver joins the rally, which is held above $ 32
Silver (XAG/USD) also runs on the upward trend of the precious metals and acts at $ 32.08 as the demand for Safe-Haven Assets increases. Weakness in the US Dollar Index (DXY) has provided a strong basis for the meeting of Silver, while the wider industrial demand remains stable.