The actively rising demand for gold continues to strengthen its prices today, amid the uncertainty of the trading plans of U.S. President Donald Trump, which supports the attractiveness of the yellow metal as a safe haven in conditions of potentially rising trade wars. Gold prices in spot trades rose by 0.2 percent, reaching a level of $2903.56 as of 03:01 GMT. Futures for gold also increased by 0.6 percent, to $2916.80.
Kyle Rhoda, a financial analyst at Capital.com, noted: "Clearly, large purchases from central banks are visible, and there may also be a deficit in Europe due to the increasing demand for gold in the U.S. to avoid potential customs duties." He added: "I believe that the upward movement for gold will continue, fundamental factors look strong."
Since assuming office, Trump has imposed 10 percent tariffs on Chinese imports, announced the introduction of duties of 25 percent on imports from Mexico, and on energy imports from Canada prior to the postponement of their introduction, noted the introduction of duties of 25 percent on steel and aluminum for importers, and plans to introduce restrictions for all countries imposing duties on American imports.
Federal Reserve Board member Michelle Bowman stated that she wants to be assured that inflation will decrease more this year before a potential repeat decrease in interest rates, especially under conditions of uncertainty regarding the new trade policies of the Trump administration and other politics. Gold is considered a traditional means of protection against rising inflation and geopolitical uncertainty.
On the geopolitical aspect, a group of European leaders, assembled at a meeting in Paris, expressed readiness to provide Ukraine with guarantees of safety, but warned that the cessation of fire without an agreement on peace regulation is unacceptable. In regard to other precious metals, silver in spot trades fell by 1.3 percent to $32.37 per ounce, platinum rose by 0.5 percent to $980.29, and palladium increased by 1.4 percent to $976.35.
