US President’s tariff comments drive Gold prices close to All-Time high
Gold prices rose in early Friday trading, nearing the all-time high reached at the end of October. The most notable drivers behind these gains are lower Treasury yields and the softening of the US dollar following comments from the new US President on tariffs. Donald Trump continues to alternate between aggressive and conciliatory rhetoric regarding tariffs. Most recently, he stated a preference to avoid imposing them on China. These remarks have eased concerns among investors who feared that high import tariffs could reignite inflation. This shift in sentiment has been reflected in lower Treasury yields and a weaker dollar, with the index measuring the dollar's performance against a basket of major currencies dropping to a five-week low, enhancing the appeal of gold, a non-yielding precious metal.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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