Gold is near record levels amid renewed trade tensions

Gold prices rose today to remain near record levels, with investors turning to the precious metal, which is considered a safe haven in light of the renewed trade tension between the United States and China and the increasing uncertainty on the global scene, while expectations of a new US interest rate cut reinforced this momentum.

Gold in instant transactions increased 0.4 percent to $4,155.99 per ounce by 00:32 GMT.

US gold futures for December delivery rose 0.3 percent to $4,174.30.

The precious metal, which does not generate a return and is considered a safe haven in light of uncertainty, has increased 55 percent since the beginning of this year and reached a record high of $4,179.48 yesterday, Tuesday.

Gold rose due to several factors, including geopolitical and economic uncertainty, expectations of a reduction in US interest rates, central banks purchasing large amounts of the precious metal, a decline in the dominance of the dollar, and strong flows from exchange-traded funds.

Federal Reserve Chairman Jerome Powell said on Tuesday that the labor market in the United States is still weak, but the economy “may be on a more stable path than expected.”

Powell added that interest rate decisions would be made on a “meeting-by-meeting” basis, balancing between a weak labor market and continued inflation above the target level.

Investors expect a 25 basis point rate cut at the Federal Reserve’s next meeting this month, with a similar cut expected in December.

US President Donald Trump said that Washington is considering cutting some trade relations with China, including cooking oil, amid escalating trade tensions.

Both countries began imposing reciprocal port fees on Tuesday.