Gold rises thanks to the increased demand for safe haven

Gold prices rose today, amid increasing demand for yellow metal as a safe haven due to concern for imminent customs duties that US President Donald Trump intends to impose and expectations to reduce interest rates by the Federal Reserve (the US Central Bank) this year.

By 00:05 GMT, gold in instant transactions rose one percent to $ 3025.12 an ounce.

US gold futures increased 0.3 percent to $ 3030.70 an ounce.

Gold reached its highest level at $ 3057.21 an ounce last Thursday, as commercial tensions fueled the demand for safe haven.

It is usually seen in gold that does not generate returns as a tool for hedging in times of geopolitical and economic turmoil and inflation, as it flourishes in the low interest rate environment.

The customs duties will remain in the spotlight with Trump’s announcement of a wave of anti -customs duties that will enter into force on April 2, which is likely to increase inflation and hinder economic growth.

Last week, the US Central Bank kept the standard interest rate fixed at 4.25% and 4.50%, as expected.

Policy makers expect the US Central Bank to make two reduction by a quarter of a percentage point by the end of the year.

But New York Federal Reserve Chairman John Williams said on Friday: The US Central Bank’s monetary policy is in its right place given the many doubts facing the economy, indicating that there is no urgent need to make any change in interest rates.

As for other precious metals, silver increased in instant transactions 0.1 percent to $ 33.06 an ounce and platinum increased 1.1 percent to $ 981.25, while palladium rose 0.5 percent to 962.54 dollars.