Gold prices rose on Tuesday as the dollar weakened and U.S. Treasury yields fell, while investors awaited inflation data to gauge the Federal Reserve’s monetary policy stance amid escalating trade tensions and concerns over economic slowdown.
اضافة اعلان
Spot gold increased 0.3% to $2,898.27 per ounce as of 05:01 GMT, while U.S. gold futures climbed 0.1% to $2,902.50.
The U.S. dollar index hovered near a four-month low recorded last week, making gold more affordable for overseas buyers, while 10-year U.S. Treasury yields declined.
Ilya Spivak, Head of Global Macro at Tasty Live, stated:
"The drop in the dollar and U.S. Treasury yields is providing some support for gold. Prices have remained in a range between approximately $2,830 and $2,960 over the past four weeks. A decisive break above or below this range is needed to confirm a lasting directional move."
Trade Tensions and Market Uncertainty
During a Fox News interview on Sunday, U.S. President Donald Trump declined to speculate on whether his imposed tariffs would trigger a U.S. recession, contributing to a decline in global stock markets.
Last Tuesday, Trump imposed a 25% tariff on imports from Mexico and Canada, alongside new tariffs on Chinese goods. However, he later exempted many Mexican and Canadian imports for a month, creating uncertainty in markets and fueling concerns over inflation and slower U.S. economic growth.
Focus on U.S. Inflation Data and Interest Rates
Investors are now awaiting the release of the U.S. Consumer Price Index (CPI) data on Wednesday to assess the Federal Reserve’s stance on interest rates.
Gold is considered a hedge against political risks and inflation, but higher interest rates could reduce its appeal, as gold does not yield interest.
Other Precious Metals Performance
Silver rose 0.3% to $32.19 per ounce.
Platinum remained steady at $957.89.
Palladium fell 0.3% to $940.47.
Gold’s future movement will likely depend on the Federal Reserve’s interest rate decisions and ongoing economic uncertainties.
