Gold prices rose in early Wednesday trading, reaching a fresh all-time high. The precious metal is finding support amid dollar weakness and growing apprehension over the escalating trade war between the US and China and its likely negative impact on global economic growth prospects. The US dollar’s decline, which began after the administration’s last-minute U-turn on imposing additional tariffs on imports from Mexico and Canada, continued Tuesday following the release of disappointing labour and industrial data indicating a slowdown in the world’s largest economy. A weaker dollar is supportive of gold prices. At the same time, US tariffs on China and Beijing’s retaliation are ominous for the global economy, increasing the appeal of haven gold. This demand is further reinforced by renewed uncertainty in the Middle East following Donald Trump’s comments about taking over Gaza and displacing the Palestinian population.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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