- The price of gold rises to about $ 2,915 in the early Asian session on Monday.
- The global uncertainty and Trump identification threats support the price of gold.
- The weakest function reports in February, the US dollar withdraws less.
The price of gold (Xau/USD) attracts some buyers to about $ 2915 during the early Asian session on Monday. Global uncertainty and a global trade war threatened by US President Donald Trump has provided some support for precious metals.
Last week, US President Donald Trump on Thursday issued an executive order to exempt goods from Canada and Mexico under a trade agreement in North America, known as UsMCA, two days after its imposition. However, US Secretary of Commerce Howard Lottenic late on Sunday said that the 25 % definitions on steel and aluminum imports are scheduled to enter into force on Wednesday, which is unlikely to be postponed. The uncertainty surrounding Trump’s tariff policies will be strengthened, which will benefit from the price of gold in the short term.
Moreover, the labor market in the United States (the United States) slowed last month. The report suggested that the Federal Reserve (Fed) remained on the right track to reduce interest rates several times this year. This, in turn, weighs in US dollars (USD) and raises the price of commodity commodities denominated in US dollars.
The data issued by the American Labor Statistics Office (BLS) revealed on Friday that the non -agricultural American salaries (NFP) increased by 151,000 in February, followed by an increase of 125,000 (revised from 143,000) in January. This number came weaker than the market expectation of 160,000.
Meanwhile, the unemployment rate increased to 4.1 % from 4.0 % in January, while the annual wage inflation increased, as it was measured by changing the average clock profits, to 4.0 % of 3.9 % (reviewed from 4.1 %).
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.
