- The price of gold rises to about 3350 dollars in the early Asian session on Monday, an increase of 0.80 % a day.
- The great uncertainty about Trump’s tariff for imports in the United States supports the price of gold.
- The increasing notes in the Federal Reserve may head towards Xau/USD.
The price of gold (Xau/USD) rises to nearly 3350 dollars during the early Asian session on Monday after facing some profits due to the long weekend. The uncertainty about US President Donald Trump’s policies and continuous geopolitical tensions still supports precious metal.
Investors rushed to safe assets such as gold due to the high uncertainty about customs tariffs and its impact on the economy, which has led to an increase of more than 25 % in yellow metal prices since January. UBS analysts said: “The case of adding gold allocations has become more convincing than ever in this environment of uncertainty in customs tariffs, weaker growth, higher inflation, geopolitical risks and diversification away from American origins and USer $.”
In addition, central bankers added gold to their governor. China, the largest gold consumer in the world, added gold to its property for the fifth month in a row, enhancing its demand for the precious metal as a safe origin in the face of increasing global tensions and geopolitical tensions.
On the other hand, the Federal Reserve Chairman (Fed) turned Jerome Powell last week, reducing the possibility of reducing the federal reserve rate in June. Meanwhile, Mary Dali, President of San Francisco Bank, said on Friday that the American economy is in a good place, although some sectors slow down. This, in turn, can raise Greenback and weighs the price of goods provided by the US dollar.
Common Gold questions
Gold played a major role in human history, as it was widely used as a store for value and exchange. Currently, regardless of its brilliance and use of jewelry, the precious metal is widely seen as a safe asset, which means it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against currency decline because it does not depend on any specific source or government.
Central banks are the largest gold holders. In their goal to support their currencies at troubled times, central banks tend to diversify their reserves and buy gold to improve the powerful power and currency. High gold reserves can be a source of confidence to the dissolved country. Central banks added 1136 tons of gold worth $ 70 billion to their reserves in 2022, according to the data of the Golden Golden Council. This is the highest annual purchase since the start of the records. Central banks of emerging economies such as China, India and Turkey increase their gold reserves.
Gold has a counter -relationship with the US dollar and the United States Treasury, which is one of the main reserves and safe assets. When the dollar decreases, gold tends to rise, allowing investors and central banks to diversify their assets at turbulent times. Gold is inversely associated with the origins of the risk. The assembly in the stock market weakens the price of gold, while sales in the most dangerous markets tend to prefer precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of deep stagnation can escalate the price of gold due to its safe situation. As a lower asset than the return, gold tends to rise with low interest rates, while the high cost of money usually reaches the yellow metal. However, most moves depend on how the US dollar (USD) is behaved as the original is priced in dollars (Xau/USD). The strong dollar tends to maintain the price of gold -controlled gold, while the weakest dollar is likely to increase the price of gold.
