Gold Surges on Tariff and Fed Rate Uncertainty
Gold prices rose to their highest level in more than four months as many investors sought a safe haven amid uncertainty over US President Donald Trump's trade tariffs. This rise was also supported by speculation that the Federal Reserve (The Fed) would cut interest rates in September. Furthermore, the US dollar weakened, making gold a more attractive investment option. Spot gold prices are currently near the record high reached in late April.
Uncertainty intensified after a court declared the trade tariffs illegal, although they remain in effect until October while Trump plans to appeal. Meanwhile, the market expects the Fed to cut interest rates by 0.25% this month to address the risk of persistently high inflation and economic pressures.
However, the Fed has not yet given full certainty due to concerns about persistently declining inflation. All of these factors have kept gold prices rising and making them a popular safe-haven investment.
The gold price at the time of writing was $3,495/Toz.
- Buy if the price moves within the $3,502 range
- Sell if the price moves within the $3,488 range
Resistance 2: $3,516
Resistance 1: $3,509
Support 1: $3,481
Support 2: $3,374
DISCLAIMER
Note: This article is for analytical purposes only and is not a definitive reference. Consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
