Are Tariff Worries Driving Safe-Haven Demand?
Trump’s rhetoric on tariffs, including proposed levies on imports from Mexico, Canada, and China, heightened concerns about global trade disruptions. These uncertainties drove investors toward gold as a hedge against economic instability. Expectations of a “friendlier” resolution to trade talks with China provided some relief, but skepticism remains high.
Will Inflation and Treasury Yields Keep Supporting Gold?
Inflationary fears were also evident as analysts noted the potential impact of tariffs on consumer prices. U.S. Treasury yields dipped as markets absorbed Trump’s comments and awaited key economic data, further supporting gold prices. BlackRock CEO Larry Fink warned that rising inflation could challenge equity markets, indirectly benefiting gold.
What Role Will the Fed Meeting Play in Gold’s Next Move?
Looking ahead, all eyes are on next week’s Federal Reserve meeting, where no rate changes are expected. However, the Fed’s post-meeting statement and Chair Jerome Powell’s comments will be critical for market sentiment. Key economic data, including fourth-quarter GDP and the Personal Consumption Expenditures (PCE) index, are also on the calendar, potentially adding volatility to gold markets.
Will Gold Break $2,790 or Face Resistance?
Source: Gold News: Can Fed Signals and PCE Inflation Data Spark a Gold Breakout?
