Gold holds good hand for a profitable week with Trump's tariffs supporting precious metals
Gold’s price (XAU/USD) sees its rally continue with on Tuesday over 1.20% gains and good odds for this Wednesday to lock in gains as well. The bullish momentum is fueled by new US President Donald Trump’s comments on tariffs. This time, a 10% levy on Chinese goods triggered the leg higher in Bullion.
Meanwhile, investors remain focused on the implications of the Trump administration’s tariff and tax cut policies, which would likely erode the nation’s finances and lead to an inflation boom. That may limit the Federal Reserve’s (Fed) ability to keep easing monetary policy. Higher borrowing costs typically pose a headwind for Bullion regarding the correlation between the two assets.
Source: Fxstreet