Gold Hits Two-Week High As Safe-Haven Demand Continues
Gold (XAU/USD) surged higher on Tuesday (06/05) for the second straight day, as geopolitical tensions around the world continued to support investor demand for safe-haven assets. In the Middle East, Israel is increasingly preparing its ground offensive in the Gaza Strip with the aim of taking full control of the territory.
In the United States (US), pressure is mounting on US President Donald Trump and his administration to finally announce the first trade deal. Trump and his cabinet have been vocal about an imminent deal, with US Commerce Secretary Howard Lutnick saying that the first trade deal will be with the top ten economies, Fox News reported.
Meanwhile, some very sharp moves in the Forex market have also kept investors on guard. Traders are trying to assess how to position themselves after the impact of the Taiwan Dollar (TWD) move seen on Monday after it strengthened sharply against the US Dollar (USD). The bigger risk is a domino effect on the US Dollar – which could weaken against other major Asian currencies – making it no longer a stable and reliable safe-haven currency and thus benefiting Gold.
Source: FXStreet