Gold's price fell to around $2760 amid a robust US dollar, driven by geopolitical tensions and President Trump's aggressive trade policies. The decline reflects uncertainty about long-term trade impacts, yet gold's downside may be limited by market caution. Trump's tariffs on Colombia have escalated trade tensions, benefiting the dollar as a safe haven. Market observers expect the Federal Reserve to maintain interest rates, but any indications of future monetary policy shifts could influence gold prices. Overall, while immediate pressure exists, potential medium-term benefits for gold may arise from economic slowdowns or reduced investor confidence.
However, gold could benefit in the medium term from this uncertainty if trade tensions lead to a global economic slowdown or a decline in investor confidence.
The downside for gold may be limited due to prevailing market caution and uncertainty about the long-term effects of recent trade measures.
This move, which includes an emergency 25% tariff on all Colombian goods entering the US, reflects an aggressive trade policy that could exacerbate global tensions.
The US dollar strengthened notably with the escalation of trade tensions, particularly after President Trump imposed retaliatory tariffs on Colombia.
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