New York: Gold prices rose more than 1% on Thursday on buying on the dip after hitting a one-week low as namesake friendly news surfaced over trade agreement intentions between the U.S. and China. As of 0634 GMT, spot gold was up 1.1% at $3,323.21 per ounce, with U.S. gold futures up in tandem to a price of $3,330.20.
It was a volatile week, with gold peaking at an all-time high of $3,500.05 on Tuesday before dipping below $3,300 the following day. The key driver of those moves, according to Kyle Rodda, financial market analyst at Capital.com, is the technical trading in conjunction with the intermittent headlines coming in from the geopolitical landscape. He went on to stress, however, that “the strong fundamentals are supportive enough for bargain hunters to start stepping back into the market.”
All this volatility is happening against the backdrop of changing American trade policies. U.S. Treasury Secretary Scott Bessent remarks that trade tensions are easing. Tariffs as they stand are not sustainable on goods from China, hence possibly lifting some barriers to trade, but he hastens to add that the President will not act on this unilaterally. Meanwhile, reports are surfacing that the Administration may consider tariff relief for carmakers following pressure from the industry.
As the IMF warns that tariffs could inhibit global growth and stave off prospects of contracting, the weaker greenback, presently down 0.2%, is supporting gold in international markets as a viable investment.
The view on gold as a safe haven will prevail even with momentary dips due to continual economic uncertainty and frequent changes in trade policies. According to the analysts, upward support for gold could extend until unless the Trump administration takes a decisive stand on tariffs.
[Source Credit: Business Recorder]
