Gold prices hit a new all-time high in early Friday trading, driven by renewed demand for haven assets as risk-related investments, such as US tech stocks, erased the modest gains seen earlier in the week. The shift towards gold was triggered by a resurgence in trade tensions following the US administration’s announcement of 25% tariffs on all car imports on Wednesday. If confirmed, this measure is likely to significantly impact the global economy, further dampening the growth outlook and enhancing the appeal of refuge assets such as gold. Against this backdrop, the US dollar weakened against other major currencies, as traders brushed aside the better-than-expected GDP data released on Thursday and instead focused on concerns over the fallout from the White House’s trade policies. This increased speculation that the Federal Reserve will have little choice but to resume rate cuts soon — a dynamic that provides further support to gold prices due to its inverse correlation with the dollar.
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.