John Deo

Gold Prices Retreat but Stay Near Record Highs Amid Trade War Concerns

  • click to rate
    Posted by John Deo Feb 25 - Filed in General - #financialmodelingprep  - 15 views

    Gold prices dipped in Asian trade on Tuesday but remained close to all-time highs, as persistent safe-haven demand offset profit-taking. The metal had surged overnight, nearing a fresh peak, as investors braced for escalating U.S.-China trade tensions and potential new tariffs on Canada and Mexico.

    Key Drivers Behind Gold’s Movement

    \ud83d\udcc9 Gold Price Update:

    • Spot gold: Down 0.5% to $2,947.73 per ounce.
    • Gold futures (April): Down 0.3% to $2,952.99 per ounce.
    • Last week’s record high: $2,956.37 per ounce.

    \ud83d\udcb0 Safe-Haven Demand Rises:

    • U.S. President Donald Trump reaffirmed plans to impose 25% tariffs on Canada and Mexico by March 4, heightening global trade war concerns.
    • Over the weekend, Trump signed an executive order expanding trade and investment restrictions on China, adding to uncertainty in markets.

    \ud83c\udf0d Geopolitical & Economic Factors Supporting Gold:

    • China Retaliation Risks:
      • Beijing has already responded with new tariffs and export controls in reaction to earlier U.S. sanctions.
      • Reports indicate the U.S. is weighing tighter controls on semiconductor exports, which could further escalate tensions.
    • Inflation & Interest Rate Outlook:
      • The Federal Reserve’s 2025 rate-cut trajectory remains uncertain, but sustained inflation fears are keeping gold demand strong.

    Investor Takeaways: Is Gold Set for New Highs?

    \ud83d\udd39 Short-term resistance: Gold is consolidating just below its record high as traders await further tariff developments.
    \ud83d\udd39 Medium-term outlook: Rising trade war tensions and a weaker dollar could push gold beyond the $3,000 per ounce mark.
    \ud83d\udd39 Key risk events: Watch for March 4 tariff deadlines, U.S.-China trade updates, and Fed policy signals.

    For real-time gold price movements and commodity data, check out the Commodity API.

    \ud83d\udcca Bottom Line: While gold saw mild profit-taking, its strong safe-haven appeal amid rising trade tensions and global economic uncertainty suggests further upside potential.