Gold price rises as trade war tensions remain elevated
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Gold gains as traders react to President Trump’s threat of new reciprocal tariffs, enhancing its safe-haven status. US Nonfarm Payrolls fall short of expectations, yet a declining Unemployment Rate suggests a resilient labor market. PBoC’s increased Gold reserves and cautious comments from Fed officials contribute to the metal’s price dynamics. Gold resumed its uptrend on Friday amid the escalation of the trade war between the US and China and a mixed US employment report. The XAU/USD trades at $2,862, up 0.24%. US President Donald Trump’s plans to announce reciprocal tariffs on many countries next week lent a lifeline to Bullion traders as the yellow metal rose on those remarks. Therefore, tensions over the weekend could increase flows to Gold’s safe-haven appeal. US data revealed that Nonfarm Payrolls in January missed the mark, but the Unemployment Rate dipped compared to estimates and December’s reading. The data suggests the labor market remains strong, which might prevent the Federal Reserve (Fed) from easing policy. Following the data, Bullion prices jumped to the session’s highs of $2,886, but once the dust settled, Gold retraced to its previous level. Earlier, reports emerged that the People’s Bank of China (PBoC) resumed buying Gold with reserves increasing from 73.29 million ounces to 73.65 million ounces. Meanwhile, Fed speakers crossed the newswires, continuing with their patient rhetoric. Minneapolis Fed President Kashkari sees the policy rate “modestly lower.” Chicago Fed President Goolsbee said recently that NFP data was solid and that rates would be lower, but the pace “will be slower with more fogginess.” Fed Governor Adriana Kugler said the inflation rate “has gone sideways,” adding that “it makes sense to hold the policy rate where it is.” Daily digest market movers: Gold price climbs alongside the US Dollar The US Dollar Index (DXY) edges up 0.32% and sits…
Filed under: News - @ February 8, 2025 5:21 pm