Gold prices held steady in Asian trading on Thursday after surging to new record highs in the previous session. Bullion remained close to $2,870 an ounce, as rising economic and geopolitical uncertainties continued to fuel demand for the precious metal as a safe-haven asset.
Gold gained 0.9% on Wednesday, reaching an all-time high of $2,882.36 per ounce. The price rally was largely driven by escalating concerns over geopolitical tensions, particularly comments from U.S. President Donald Trump regarding the potential for the U.S. to take control of Gaza, which his aides later sought to downplay. Trump also expressed intentions to work on a new nuclear deal with Iran, further heightening geopolitical risks. Additionally, the U.S. is expected to present a plan to address Russia’s war in Ukraine next week.
Concerns about the ongoing U.S.-China trade war have also added to gold’s appeal, as investors seek a store of value amid the uncertainty. Trump’s potential tariff impositions on additional nations are contributing to these concerns, and the precious metal’s role as a hedge against global economic instability remains a key factor behind its rise.
Gold has already surged by 9% this year, supported by strong demand from central banks worldwide, with no signs of slowing in their appetite for the metal, according to the World Gold Council. This demand, combined with the backdrop of trade-war fears, continues to drive bullion prices higher.
Investors are also closely monitoring the potential impact of tariffs on inflation, which could further affect the U.S. economy and monetary policy. Recent data revealed weaker-than-expected demand for services, which could signal a moderation in economic activity in the coming months as Americans adjust to high living costs.
Furthermore, trade-war fears have sparked a rush for gold, particularly as major dealers look to move metal to the U.S. before any new tariffs are imposed. Gold held in the Bank of England vaults is trading at a discount, creating weeks-long queues as investors scramble to withdraw the metal.
As of 9:52 a.m. in Singapore, spot gold was up by 0.1%, priced at $2,869.94 per ounce. The Bloomberg Dollar Spot Index dipped 0.1% following a 0.9% drop in the previous two sessions, adding further support to gold’s rally. Silver, platinum, and palladium also saw gains, reflecting the broader trend of investors seeking safe-haven assets amid global uncertainties.
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