The gold price has surged to an unprecedented $3,000 per ounce, influenced by heightened trade tensions and inflationary fears associated with comments from US President Donald Trump. Spot gold increased 0.7% to $2,954, marking over a 12% rise this year. Analysts like Susannah Streeter noted that gold serves as a safe haven amid geopolitical uncertainties, particularly regarding US relations with Ukraine. Financial strategist Inki Cho pointed out that while ongoing US-Russia negotiations could impact gold demand, any negative developments may enhance gold's appeal as a hedge against instability.
The precious metal is riding high at record levels amid concerns about Trump's trade and foreign policy stances. Tensions remain high around talks over Ukraine after the US President referred to President Zelensky as a dictator. The US message that Europe should do more itself to counter military threats, is adding to concerns about a fracturing of solid defence relations.
On the geopolitical front, the ongoing conflict between Russia and Ukraine adds another layer of complexity. The US started negotiations with Russia, raising hopes for a resolution. Steady progress in negotiations could strengthen risk appetite, putting pressure on gold. Conversely, any setbacks may reinforce gold's appeal as a safe-haven asset.
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