US Trade Tariffs Drive Inflation, Gold Remains a Choice
The price of gold (XAU/USD) today showed relatively stable movement with a positive trend, influenced by rising US inflation data and the Federal Reserve's tight monetary policy stance. Analysts expect gold to move in a price range between $3,300 and $3,400 per ounce in the near term.
The latest US Consumer Price Index (CPI) data for June recorded an annual increase of 2.7%, higher than the 2.4% increase in May. This increase was driven by import tariffs, which are starting to exert real pressure on consumer prices. This has led the market to expect the Fed to maintain high interest rates for longer, creating uncertainty for gold prices.
On the other hand, the strengthening US dollar is putting pressure on gold by making it more expensive for holders of other currencies. However, geopolitical tensions and global economic uncertainty continue to maintain demand for gold as a safe-haven asset.
Source: Newsmaker.id