Despite its recent decline, the price of gold maintains its upcoming expectations

Despite the relative decline in gold in the last hours, it continues to maintain its positive expectations after achieving great leaps near its highest standard levels, with investors seeking to protect from the state of economic uncertainty amid continued inflation and concerns from the American commercial policy and change the expenses of the Reserve Bank The federal pays the attractiveness of gold as a safe origin, according to the American FX Empire platform.

The direction of gold prices

Technically, the market goes in an upward direction and prices indicate over the level of $ 2942.78 an ounce to the resumption of the direction.
The deliberative week begins with a market that has a seven -week height, which makes there a chance of a potential price height up.
Also read: Why is gold a good safe haven yet despite its high prices?
Last week, gold settled at 2882.48 dollars, up by $ 21.23 or positively 0.74%.

The demand for gold

Gold prices rose with the support of growing trade tensions after US President Donald Trump signed an executive matter targeting trade policies in foreign countries.
The plan states that customs definitions are imposed compared to countries that impose taxes on American imports, which raises fears of a lengthy commercial confrontation.

Fears of Trump’s decisions

Although Trump postponed the application of customs definitions, this step introduced a new state of uncertainty in global markets.
The state of uncertainty has supported this gold prices, as investors remain cautious about the retaliatory measures by major commercial partners of the United States, in addition to the broader economic impact of possible new customs tariffs.

Gold and inflation data

The recent American inflation reports showed that prices have increased stronger than expected, adding to fears of continued inflation.
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The consumer price index increased by 0.5% in January, exceeding expectations, while inflation for wholesale readings, which is measured by the producers’ price index, increased by 3.5% on an annual basis.
The two readings indicate an inflationary pressure that may keep the Fed Reserve Bank cautious about reducing interest rates.
Retail sales in the United States decreased unexpectedly by 0.9% in January, a more severe decrease than expected by 0.2%.
While the December numbers were modified, the weakest retail data is expected, shadow of doubt about the power of consumer spending, which is the main driver of economic growth.

Gold prices expectations

The broader gold trend is still ongoing as the risks of trade war and inflation fears keep the demand for safe haven strong and while a little weak retail sales of concerns about monetary policy strictness by the Federal Reserve is reduced, the upcoming inflation data (personal consumption expenses) will be Decreased to select the next step for gold.
If inflation rates show signs of slowdown, gold may face resistance at its current levels, however, the continuous price pressures and the uncertainty associated with the trade provides a strong basis for the continuation of the height.