Safe-haven flows amid the fear of a global trade conflict provide support
10 March 2025 - 07:37
byAnjana Anil
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Bengaluru — Gold prices inched higher on Monday, supported by a weaker dollar and safe-haven flows amid the fear of a global trade conflict, while investors awaited further signals to gauge the US Federal Reserve’s interest rate stance.
Spot gold was up 0.1% at $2,911.71/oz by 4.47am GMT, while US gold futures firmed 0.1% to$2,917.90.
The dollar index hovered near a four-month low hit last week, making greenback-priced gold less expensive for overseas buyers.
“There are mounting downside risks to growth, while US foreign policy is also a source of uncertainty, boosting the appeal for gold,” Capital.com financial market analyst Kyle Rodda said.
“I think $3,000 is a level we’ll breach soon — probably in the next couple of months at the latest.”
US President Donald Trump declined to predict whether the US could face a recession amid stock market concerns about his tariff actions on Mexico, Canada and China over fentanyl.
See-saw tariff announcements have unnerved Wall Street as investors say flip-flopping moves by the Trump administration to roll back levies on trading partners are causing confusion rather than bringing relief.
Trump imposed new 25% tariffs on imports from Mexico and Canada last Tuesday, along with fresh duties on Chinese goods.
He later exempted many imports from Mexico and some from Canada from those tariffs for a month, creating uncertainty in the markets and fanning worries about US inflation and growth.
Tariffs have been a key concern for investors, with many believing that they can harm economic growth and be inflationary.
Investors now await US consumer price index (CPI) data on Wednesday and producer price index (PPI) data on Thursday.
Gold is seen as a hedge against political risks and inflation, but higher interest rates dull the non-yielding asset's allure.
Spot silver fell 0.4% to $32.42/oz, platinum added 0.2% to $965.15, and palladium eased 0.1% to $949.21.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold inches up on softer dollar
Safe-haven flows amid the fear of a global trade conflict provide support
Bengaluru — Gold prices inched higher on Monday, supported by a weaker dollar and safe-haven flows amid the fear of a global trade conflict, while investors awaited further signals to gauge the US Federal Reserve’s interest rate stance.
Spot gold was up 0.1% at $2,911.71/oz by 4.47am GMT, while US gold futures firmed 0.1% to$2,917.90.
The dollar index hovered near a four-month low hit last week, making greenback-priced gold less expensive for overseas buyers.
“There are mounting downside risks to growth, while US foreign policy is also a source of uncertainty, boosting the appeal for gold,” Capital.com financial market analyst Kyle Rodda said.
“I think $3,000 is a level we’ll breach soon — probably in the next couple of months at the latest.”
US President Donald Trump declined to predict whether the US could face a recession amid stock market concerns about his tariff actions on Mexico, Canada and China over fentanyl.
See-saw tariff announcements have unnerved Wall Street as investors say flip-flopping moves by the Trump administration to roll back levies on trading partners are causing confusion rather than bringing relief.
Trump imposed new 25% tariffs on imports from Mexico and Canada last Tuesday, along with fresh duties on Chinese goods.
He later exempted many imports from Mexico and some from Canada from those tariffs for a month, creating uncertainty in the markets and fanning worries about US inflation and growth.
Tariffs have been a key concern for investors, with many believing that they can harm economic growth and be inflationary.
Investors now await US consumer price index (CPI) data on Wednesday and producer price index (PPI) data on Thursday.
Gold is seen as a hedge against political risks and inflation, but higher interest rates dull the non-yielding asset's allure.
Spot silver fell 0.4% to $32.42/oz, platinum added 0.2% to $965.15, and palladium eased 0.1% to $949.21.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.