Gold soars to new record highs. Will the rise continue despite challenges from the Fed?
Gold prices continued to rise during Tuesday trading, with prices currently trading near $5,080 per ounce. after the yellow metal recorded its highest level in history yesterday at $5,110 per ounce, supported by strong demand for gold as a safe haven amid escalating global trade and geopolitical tensions.
Temporary correction followed by strong rebound
Yesterday, gold experienced a short-term correction after reaching its historic peak, falling to around $4,990 per ounce before quickly rebounding, in a clear sign of continued strong buying momentum and the dominance of the upward trend in the market.
Trade tensions support demand for gold
This strong support for gold prices came after US President Donald Trump escalated his trade rhetoric, threatening to raise tariffs on cars, wood, and medicines from South Korea, as well as increasing tariffs on other goods from 15% to 25%, noting that no progress had been made on the trade agreement announced last year.
Cautious anticipation for the US Federal Reserve meeting
On the other hand, investors are turning their attention to the US Federal Reserve's two-day monetary policy meeting, which begins today.
Although expectations widely indicate that interest rates will remain unchanged, markets are closely watching Fed Chairman Jerome Powell's statements, especially in light of increasing pressure from the White House to cut interest rates in the coming period.
Strong gains for gold since the beginning of the year
Gold has recorded strong gains of around 18% since the beginning of the year, supported by investors turning away from currencies and bonds and increasing demand for safe assets amid continuing global economic and political uncertainty.
