Gold Prices Hit New Record High, Trade Tensions Fuel Demand
Gold prices continued their rally to a new record high earlier this week on Monday, driven by increased demand for safe-haven assets amid re-escalating US-China trade tensions. Spot gold hit a new high of $4,085.05 per ounce during European trading.
Market sentiment toward gold has become increasingly positive as investors anticipate a de-escalation in the US-China trade war, while also placing hopes on the Fed's monetary policy. Trump's threat to impose 100% tariffs on Chinese goods has sparked defensive action in the market, boosting gold as an attractive hedge. However, a stable dollar and expectations of a US interest rate cut have added to the precious metal's appeal to market participants.
The current rally is strong, but analysts also warn of the possibility of a short-term correction if global sentiment weakens or US economic data surprises. Medium-term targets remain upward, with several banks increasing their long-term gold price projections. However, investors are advised to remain vigilant against spikes in volatility and sudden geopolitical news that could change market direction.
Source: Newsmaker.id
