Gold approaches $3,000 as Trade War fears and Inflation concerns mount

Gold approaches $3,000 as Trade War fears and Inflation concerns mount

Gold prices hit an all-time high in early Tuesday trading, edging closer to the $3,000 level. The rise is driven by a combination of fears over the impact of US tariffs on trade—and threats of retaliation—along with the return of the spectre of inflation and ongoing global geopolitical uncertainty. A global trade war could cause widespread economic damage, increasing the appeal of safe-haven gold. At the same time, US protectionism is likely to push up prices for imported goods, driving inflation higher and enhancing the appeal of the precious metal, which is seen as a hedge against monetary devaluation. Given this backdrop, and with several unresolved epicentres of geopolitical instability, the outlook remains bullish for gold, with further price gains possible.

Ricardo Evangelista – Senior Analyst, ActivTrades



Source: ActivTrader

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