Safe-haven gold touches 2-week peak on trade tensions, rate cut hopes
Gold rose to an over two-week high on Thursday, buoyed by safe haven demand after U.S. President Donald Trump's tariffs went into effect and U.S. jobs data added to rate-cut expectations.
Spot gold gained 0.6% to $3,388.09 per ounce as of 0956 a.m. ET (13:56 GMT), after hitting its highest level since July 23 earlier in the session. U.S. gold futures added nearly 0.7% to $3,455.60.
"Ongoing trade tensions, and heightened geopolitical tensions continue to underpin the market with the safe haven interest," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Trump's higher tariffs on imports from a slew of countries came into effect on Thursday, leaving some trade partners like Switzerland, Brazil and India scrambling to reach a better deal.
Meanwhile, the number of Americans filing new applications for unemployment benefits ticked up to a one-month high last week, hinting at some easing in the U.S. labor market.
The data is supportive of rising expectations for Fed rate cuts, said Grant, adding "if the (U.S.) data continue to show weakness, we could see more dovish expectations develop and that is generally supportive to gold as well."
Gold, used as a store of value during economic and geopolitical uncertainty, also tends to thrive in a low-interest rate environment.
Source: Reuters
