- The price of gold in negative lands is trading about $ 2,880 in the early Asian session on Monday.
- Delaying Trump’s tariff reduces panic in the market, and weighs the price of gold.
- The uncertainty, high trade tensions and the weakest of the US dollar can raise the price of Xau/USD.
The edges of the gold price (Xau/USD) are less than $ 2,880 due to the profit achievement during the early Asian session on Monday. However, fears of a global commercial war following the push of US President Donald Trump pushing mutual definitions may help reduce the losses of precious metal.
Delay in the Trump administration tariff proposals that are implemented and profit by merchants, install the bullish trend of yellow metals. On Thursday, Trump signed a presidential note to put his plan to impose a “mutual tariff” on foreign countries. However, its implementation has been delayed as his administration launched negotiations on one basis one by one with countries that could be affected. Fear falling from a global trade war weighs the price of gold, which is one of the traditional assets of safety.
Investors will closely monitor the developments surrounding more Trump tariff policies. Any signs of the escalation of trade tension and uncertainty can enhance safe flows, which benefit from the precious metal.
Priests American economic data Pull US dollar (USD) is less, which can provide some support for the price of commodities provided by the US dollar. The US retail sales decreased by 0.9 % in January of the increase of 0.7 % (revised from 0.4 %) in December. This number came less than the market consensus by -0.1 %.
Common Gold questions
Gold played a major role in human history, as it was widely used as a store for value and exchange. Currently, regardless of its brilliance and use of jewelry, the precious metal is widely seen as a safe asset, which means it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against currency decline because it does not depend on any specific source or government.
Central banks are the largest gold holders. In their goal to support their currencies at troubled times, central banks tend to diversify their reserves and buy gold to improve the powerful power and currency. High gold reserves can be a source of confidence to the dissolved country. Central banks added 1136 tons of gold worth $ 70 billion to their reserves in 2022, according to the data of the Golden Golden Council. This is the highest annual purchase since the start of the records. Central banks of emerging economies such as China, India and Turkey increase their gold reserves.
Gold has a counter -relationship with the US dollar and the United States Treasury, which is one of the main reserves and safe assets. When the dollar decreases, gold tends to rise, allowing investors and central banks to diversify their assets at turbulent times. Gold is inversely associated with the origins of the risk. The assembly in the stock market weakens the price of gold, while sales in the most dangerous markets tend to prefer precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of deep stagnation can escalate the price of gold due to its safe situation. As a lower asset than the return, gold tends to rise with low interest rates, while the high cost of money usually reaches the yellow metal. However, most moves depend on how the US dollar (USD) is behaved as the original is priced in dollars (Xau/USD). The strong dollar tends to maintain the price of gold -controlled gold, while the weakest dollar is likely to increase the price of gold.
2025-02-17 00:12:42