Gold Prices Continue To Hit New Record Highs Amid Trade Concerns, Weaker USD
Gold (XAU/USD) prices rallied after Friday’s modest decline and climbed to an all-time high, nearing the $3,400 mark on Monday (4/21). Trade war concerns continued to stoke recession fears and weighed on investor sentiment, as evidenced by a weaker tone in equity markets and drove flows towards the traditional safe-haven precious metal. Additionally, the prevailing US Dollar (USD) selling bias was seen as another factor that benefitted the commodity.
US President Donald Trump’s back-to-back tariff announcements have dented investor confidence in the US economy. This, to a larger extent, overshadowed relatively hawkish comments by Federal Reserve (Fed) Chairman Jerome Powell last week and dragged the USD to a fresh two-year low, which provided an additional boost to Gold prices. Meanwhile, investors seem unfazed by the overly tense conditions on the daily chart, which suggests that the path of least resistance for XAU/USD is to the upside.
Source: FXStreet