XAU/USD rises to near $4,050 as Trump’s 100% tariffs ignite safe-haven demand
The post XAU/USD rises to near $4,050 as Trump’s 100% tariffs ignite safe-haven demand appeared on BitcoinEthereumNews.com.
Gold price (XAU/USD) extends the rally to around $4,040 during the early Asian session on Monday. The escalating trade tensions between the United States (US) and China provide some support to the precious metal. Traders await signs on when the US government will reopen and release data that will shape Federal Reserve (Fed) policy. The rally in the yellow metal is bolstered by US President Donald Trump’s decision to impose fresh 100% tariffs on Chinese imports starting November 1. China warned the US that it would retaliate if Trump fails to back down on his threat to impose levies on Chinese imports. ”Heating up the trade war again will tank the dollar and be good for safe-havens,” said Tai Wong, an independent metals trader. Furthermore, traders expect the Fed to cut interest rates by 25 basis points (bps) each in October and December. According to the CME FedWatch tool, markets are pricing in nearly a 97% possibility that the US central bank cuts rates by 25 bps at its October meeting, while the odds of an additional reduction in December are at 92%. Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal. Traders will take more cues from the US Retail Sales and Producer Price Index (PPI) reports, which will be released later on Thursday. Any signs of hotter inflation in the US could lift the US Dollar (USD) and weigh on the USD-denominated commodity price in the near term. Gold FAQs Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times.…
