GOLD GLOWS NEAR RECORD AS TRADE WAR, INFLATION FEARS FUEL RUSH
Published on Feb 04, 2025 15:13
Gold hovered below $2850 in Asia, staying close to its record high as escalating trade tensions drove safe-haven demand. Domestic bullion futures surged past Rs 83000 per 10 grams, reflecting investor caution. China hit back with retaliatory tariffs after Trump�s 10% levy on Chinese imports took effect, heightening market uncertainty. Meanwhile, Trump delayed the planned 25% tariffs on Mexico and Canada for a month after securing commitments on border security and drug trafficking. The dollar index touched 109.75 yesterday as traders closely watched the trade war�s fallout, which could fuel inflation and limit the Federal Reserve�s ability to cut rates. Investors are also awaiting Friday�s nonfarm payrolls report for fresh signals on US economic strength and future Fed policy. With inflation risks mounting, gold�s appeal as a hedge remains strong, keeping prices near record levels.
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