Main information
- The price of gold has reached its highest level for two weeks.
- The threats of customs tariffs by US President Donald Trump aroused investors’ concern, pushing the upward gold prices.
- The diversification efforts of central banks, led by countries like China and Russia, also support the prices of gold.
The price of gold reached its highest level in two weeks, supported by an increased demand for refuge values in a context of increasing geopolitical tensions. The recent threats of customs tariffs by US President Donald Trump exacerbated investors’ concerns, propelling gold at 3,393.49 dollars earlier during the day, his highest level since April 22. Currently, the price of cash in cash has established $ 3,377.13 per one, recording an increase of $ 59.63.
Trade tensions continue to make gold attractive
market analysts attribute this increase to lasting structural factors which continue to support the value of gold. These include persistent trade tensions and increasing concerns concerning the domination of the US dollar as a global reserve currency. Giovanni Staunovo, analyst at UBS, plans that gold will once again reach the 3,500 dollars mark this year.
Historical yield of refuge values
Gold has always been a reliable refuge value in times of economic and political uncertainty. Last month, he reached a historic record of 3,500.05 dollars, fueled by a high demand for investment, purchases of central banks and climbing fears of tariff war.
The federal reserve should maintain interest rates at their current level this week. However, market players will closely follow the comments of President Jerome Powell to have an overview of the future trajectory of central bank rates.
Central banks diversification efforts
Beyond geopolitical factors, gold also benefits from a broader trend in central banks to diversify their reserves by moving away from the US dollar. This development towards neutral reserve assets, such as gold, was led by countries like China, India, Turkey and Russia. Purchases of central banks have notably exceeded 1,000 tonnes per year in the past three years, and this trend should continue until 2025 and beyond, which will further support gold prices as the offer decreases.
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