Gold prices touched another all-time high as global trade tensions and comments from US Federal Reserve Chief Jerome Powell increased demand for safe-haven assets. On Thursday, gold rose as much as 0.4 percent to reach $3,357.78 per ounce before giving up some gains.
This strong move followed a sharp 3.5 percent jump in gold prices on Wednesday, the biggest one-day gain since March 2023. The US dollar also weakened to a fresh six-month low, making gold even more attractive to investors.
Traders around the world were reacting to confusing tariff headlines and mixed signals from the US administration. Powell, during his speech at the Economic Club of Chicago, said it was too early for the US Federal Reserve to take any action to calm the markets. His comments highlighted that the Fed is not in a hurry to change its policy rate, adding more uncertainty to the market.
Meanwhile, the US and Japan have started formal talks to avoid higher tariffs. Although no final deal was made, both countries agreed to continue discussions during the 90-day grace period. US President Donald Trump called the talks “big progress.”
Gold has climbed nearly 28 percent so far this year, already beating its 27 percent rise in 2024. This strong performance is because of rising worries about a global economic slowdown due to the ongoing trade war.
China, on the other hand, is standing firm. President Xi Jinping, during his Southeast Asia visit, called for unity against “hegemony and power politics,” showing China’s resistance to US pressure.
Even though gold slightly dipped by 0.1 percent to $3,338.45 per ounce in Singapore trading hours, it is still heading for a weekly gain of about 3 percent. Other precious metals like silver, platinum, and palladium moved lower.
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Source: Moneycontrol.
News Desk
