Friday 2 May 2025 07:32 GMT

Gold Rallies To New Record On Trade Uncertainty And Weaker Dollar


(MENAFN- Investor Ideas) Investorideas, rated as a top 100 investment website for investment issues market commentary from Konstantinos Chrysikos Head of Customer Relationship Management at Kudotrade.


Gold prices extended their rally on Wednesday, setting a new all-time high as persistent trade policy uncertainty and a broadly weaker US dollar continued to drive safe-haven demand. President Donald Trump ordered an investigation into possible tariffs on critical mineral imports, which could intensify trade tensions with China.

While recent tariff exemptions suggested some flexibility, the latest signals from Washington point to a tougher trade posture, a shift that may strengthen safe-haven demand and support gold prices.

Additionally, ongoing central bank purchases and steady inflows into gold-backed ETFs continue to support the metal's bullish momentum.

Geopolitical tensions add another layer of uncertainty. In the Middle East, ceasefire talks between Israel and Hamas have stalled. In Eastern Europe, the impasse in negotiations between the US and Russia over a ceasefire in Ukraine remains unresolved, with the possibility of new sanctions adding to the tension.

Looking ahead, investors will closely monitor US retail sales data and remarks from Federal Reserve Chair Jerome Powell later today for insight into the economic outlook and monetary policy direction. Any dovish signs of softening consumer demand could reinforce gold's current trajectory.

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