Gold prices soar to Historic Levels as US Tariff concerns shake markets

Gold prices soar to Historic Levels as US Tariff concerns shake markets

Gold prices hit a fresh all-time high early on Friday, surpassing the $2,800 level as demand for haven assets surged amid uncertainty over the impact of the new US administration’s tariffs on inflation and economic growth. If implemented, these tariffs could drive inflation higher in the US and potentially trigger a trade war, darkening the global economic outlook. Gold tends to perform well in a stagflationary environment characterized by high inflation and low growth. This dynamic is further reinforced by ongoing geopolitical instability, disappointing US GDP figures released on Thursday, and a muted reaction from Treasury yields to the Federal Reserve’s hawkish pause, all of which have provided additional support for the non-yielding precious metal. Against this backdrop, further gains in bullion prices cannot be ruled out.

Ricardo Evangelista – Senior Analyst, ActivTrades

Source: ActivTrader

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