Gold Moves Higher As Trump Challenges Eu Over Tariffs
Gold (XAU/USD) prices are back on track to hit a new all-time high after the US Consumer Price Index (CPI) data came out lower than expected on Wednesday, sparking relief in the US markets on the reduced chances of a recession or stagflation. This in turn led to outflows from US Treasuries and inflows from US equities, with the sell-off in Treasuries fueling a rise in yields. The precious metal is trading around $2,950 at the time of writing on Thursday.
Meanwhile, traders are still trying to monitor the number of geopolitical headlines that have occurred. US President Donald Trump commented on Wednesday that the US will impose reciprocal tariffs on Europe starting on April 2. On the other hand, US diplomats are on their way to Russia to negotiate a ceasefire deal that has won support from Ukraine and provides US military support to the country.
Source: FXStreet