Gold soars to two-week high on trade jitters, India-Pakistan tensions
Gold rallied to a two-week peak on Tuesday as the Chinese markets resumed operations following a long weekend holiday and concerns about US trade policies. Geopolitical risks also boosted the precious metal, with a new conflict emerging between Pakistan and India. At the time of writing, XAU/USD trades at $3,400, surging over 2.70%.
Wall Street ended Tuesday’s session with losses as traders digested US President Trump's latest comments regarding trade policies. He said he would dictate tariff levels and acknowledged that he would be flexible in setting duties. Investors dismissed earlier comments from US Treasury Secretary Scott Bessent about possible deals with 17 countries.
Bloomberg reported that India hit terrorist camps in Pakistan but no military sites. The Indian government said, “It conducted military strikes against “terrorist camps” in Pakistan, an expected move after it pledged retaliation for a militant attack last month in Kashmir that killed dozens of tourists.”
In the meantime, Pakistan’s defense chief has warned of an “imminent” confrontation with India as tensions escalate over a dispute concerning river water rights and accusations surrounding a recent terrorist attack in Kashmir.
In addition, the US trade deficit widened in March, revealing the US Commerce Department as all eyes are set on the Federal Open Market Committee (FOMC) decision. The Fed is likely to keep rates unchanged as expected by investors, which would be scrutinizing Fed Chair Jerome Powell's post-decision press conference.
Source: Fxstreet
