Gold prices edge Higher as US Dollar retreats and Trade War fears intensify

Gold prices edge Higher as US Dollar retreats and Trade War fears intensify

Gold prices edged up in early Tuesday trading, remaining close to the all-time high reached in the previous session. The precious metal is finding support as the US dollar retreats from the multi-week high reached on Monday.

After rising on expectations of higher inflation—as the US looked set to impose higher tariffs on Canadian and Mexican imports—the greenback erased all its gains following a U-turn from the Trump administration. However, Washington has not backed down on tariffs for Chinese imports, and as Beijing retaliates, the risk of an all-out trade war increases. This scenario casts a dark shadow over global economic growth prospects. Against this backdrop, demand for haven gold is naturally rising, creating scope for further price gains.

Ricardo Evangelista – Senior Analyst, ActivTrades



Source: ActivTrader

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