Gold Prices Continue To Hit New Highs Amid Trade Concerns
Gold (XAU/USD) prices rose for the second straight day on Wednesday (4/16) also marking the fifth day of positive movement in the previous six days and touched a new record high, around the $3,285-3,288 area during the Asian session. The initial market reaction to US President Donald Trump's decision last week to pause reciprocal tariffs for 90 days faded rather quickly amid the quick turnaround in policy announcements. Further, investors remain concerned about the potential economic fallout amid the ongoing US tariff chaos, which continues to support demand for the traditional safe-haven precious metal.
In addition, expectations for more aggressive policy easing by the Federal Reserve (Fed) in 2025 turned out to be another factor that benefited the non-yielding Gold prices. Meanwhile, the US Dollar (USD) is nearing its lowest level since April 2022 touched last week amid waning confidence in US policymakers and weakening confidence in the US economy. This contributed to driving flows towards XAU/USD and remained supportive of the positive momentum, which seemed unaffected by overbought conditions. Investors now await comments from the Fed Chair
Source: FXStreet