Gold rises with the increasing demand for safe haven assets

Gold prices continued their gains, today, with the continuation of the uncertainty about US President Donald Trump’s plans for customs duties in influencing morale, which strengthened the attractiveness of the yellow metal as a safe haven amid fears of a possible global trade war.

Gold rose in instant transactions 0.2 percent to $ 2903.56 at 03:01 GMT.

And US gold futures rose 0.6 percent to $ 2916.80.

“We appear to witness large purchases on the part of central banks, and we are facing a possible shortage in Europe on the basis that there is a rush to get gold in the United States, to avoid potential customs duties,” said Kyle Roda, a financial market analyst at Capital.com.

“I think the trend still pushing gold to rise- the basics are good,” he added.

Since assuming his post, Trump imposed 10 percent customs duties on Chinese imports, and announced the imposition of 25 percent fees on goods from Mexico and Energy -related imports from Canada before he was postponed, and set a date to impose a fee of 25 percent on steel and aluminum importers, and plans to impose counter -fees on All countries that impose fees on American imports.

The impact of the new Trump administration policy

The Federal Reserve Member (US Central Bank) Michelle Bowman said that she wants to increase the conviction that inflation will decrease more this year before reducing interest rates again, especially in light of the uncertainty about the impact of the new Trump administration policy for trade and other policies. Gold is seen as a traditional hedge means of high inflation and geopolitical certainty.

Two US Central Bank officials are scheduled to speak later in the day to give more ideas and visions about the path of monetary policy.

Meanwhile, Goldman Sachs Bank raised its forecast for the price of gold to $ 3100 an ounce of $ 2890 an ounce by the end of 2025 due to the highest structural demand of central banks.

On the geopolitical level, a group of European leaders agreed at a meeting in Paris, their willingness to give Ukraine security guarantees, but they warned against a ceasefire without a peace agreement at the same time.
Regarding other precious metals, the price of silver in instant transactions decreased 1.3 percent to $ 32.37 an ounce. Platinum increased 0.5 percent to 980.29 dollars, and palladium rose 1.4 percent to 976.35 dollars.