Home Finance Gold Hits Record high on weak dollars as Trump rate risks

Gold Hits Record high on weak dollars as Trump rate risks

by Eclipsnews
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(Bloomberg)-Gold made a new all time when the dollar was pushed lower and traders sought security about the tariff measures of President Donald Trump.

Most of them read from Bloomberg

Bullion rose no less than 1.4% to $ 2,798.59 per ounce and surpassed his previous time in October. A weaker dollar makes precious metal more attractive for investors who hold other currencies because it is priced in the American currency.

The softness in the Greenback came after a generally expected rate reduction by the European Central Bank and the last data that demonstrated that the inflation-restricted gross domestic product in the US in the fourth quarter by 2.3% increased by 2.3% after the rise of 3.1% in the previous three-month period.

The precious metal has been acting in a turbulent way since the American elections, in which Trump’s decisive victory initially aroused a sale while investors flowed to more risky assets linked to his pro-growth agenda. But it has tormented background in recent weeks, because the repeated threats of the president at rates arrange the question of the port.

“You have the uncertainty about what is going to happen to Trump, with his policy and rates and things like that can influence the growth of the United States,” said Phil Streible, main market strategist at Blue Line Futures. “If you get rising inflation and you get falling growth, you get stagflation, then gold is one of the best performing raw materials in that environment.”

“I think that is what people have positioned for. There is renewed force, renewed wish to be involved in that product, “said Streible.

Trump’s policy is generally seen by economists as Firing inflation and possibly harm economic growth. Federal Reserve chairman Jerome Powell said on Wednesday that the US central bank was in a “wait-and-see” mode with regard to the potential impact of the policy of the new administration.

Powell and his colleagues from the Federal Open Market Committee have steadily held the interest rates during their first meeting of the year, adding that they will not hurry to lower the rates because they are waiting to see further progress on inflation.

Although Trump’s plans are still unclear, he set a Deadline on Saturday for 25% rates on Mexico and Canada, and also said that he is planning to taxes that are “much larger” than it Previously, of 2.5% suggested by Treasury Secretary Scott Bessent.

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