Gold Prices Rise Amid Global Trade Tensions
Gold Prices Rise Amid Global Trade Tensions
Gold prices have climbed above $2,900 per ounce for the second consecutive day, driven by escalating global trade tensions. The recent imposition of reciprocal tariffs by President Trump has increased market uncertainty, boosting demand for safe-haven assets like gold.
However, hawkish remarks from Federal Reserve officials have tempered further gains. Michelle Bowman, a member of the Federal Reserve Board, cautioned against premature interest rate cuts due to inflationary risks, while Christopher Waller suggested delaying rate reductions until there is a significant decline in inflation.
Investors are now awaiting the release of the Federal Reserve’s meeting minutes on Wednesday for additional insights into future monetary policy directions. Meanwhile, geopolitical tensions persist, with markets closely monitoring developments related to a potential ceasefire between Russia and Ukraine.
Technical analysis of gold prices reveals key support and resistance levels:
| Resistance | 2,949 | 2,975 | 3,000 |
| Support | 2,880 | 2,830 | 2,760 |
In summary, while global trade tensions have bolstered gold prices, the Federal Reserve’s stance on monetary policy may influence future movements. Market participants should stay informed on geopolitical events and central bank communications to navigate potential volatility in the gold market.
