What are the reasons for the rise of precious cities
The precious metal is heading for strong gains, supported by expectations of a US interest rate cut and flight to safe havens amid political and trade turmoil.
Gold settled above the levels of 3,530 dollars per ounce on Wednesday, settling at record levels.
what are the main reasons for this rise
- Expectations of adopting a more flexible monetary policy
Gold prices jumped to a new record high on Wednesday, exceeding the barrier of 3530 dollars per ounce, amid investor optimism that the US Federal Reserve (Fed) will start cutting interest rates soon.
These expectations came after the cautious signals given by the chairman of the board, Jerome Powell, which the market interpreted as an intention to start easing monetary policy perhaps as soon as this month.
Investors are also now closely watching the US jobs report due out on Friday, which will provide crucial clues about the health of the economy and set expectations for an interest rate cut in September.
- Independence fears: the White House's conflicts with the US Federal shake confidence
The unprecedented tensions between President Donald Trump and the Federal Reserve have added an additional layer of uncertainty.
Recent controversies, including the threatened actions of Governor Lisa Cook, have raised serious concerns in financial circles about the independence of the US central bank and the impartiality of its decisions, prompting cautious investors to seek a safe haven that preserves value.
- Trade wars and recourse to the Supreme Court
The engines of gold's rise did not stop there, the yellow metal also benefited from the continuing uncertainty surrounding the tariffs.
Trump has announced that his administration will ask the US Supreme Court for an urgent ruling to overturn a federal court decision that ruled many of the tariffs imposed by the administration illegal, threatening to spark a new round of trade instability and boost demand for safe haven assets such as gold.
Future forecast:Where Are prices going
In view of these interlocking factors, analysts are looking forward to the continuation of the upward momentum of gold.
Forecasts indicate the possibility of accelerating the pace of appreciation, as prices are expected to target the level of 3650 dollars per ounce during the next quarter, especially in light of the current macroeconomic environment, which is still saturated with risks and uncertainty.
