Gold Stabilizes Near Record High Amid US Inflation Data and Trade Tensions
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Gold prices stabilized around record levels as inflation data in the US and rising demand for safe-haven assets influenced trading dynamics amid trade tensions from President Trump.
Gold steadied near a record high as traders assessed the latest inflation data in the US alongside increasing demand for safe-haven assets following several disruptive trade announcements from President Donald Trump.
Bullion was trading above $2,900 an ounce after a report released on Wednesday indicated a higher-than-expected increase in US prices. This drove traders to adjust their expectations, pricing in only one rate cut for December this year. Consequently, Treasury yields surged, which put pressure on the non-interest bearing precious metal.
Despite a drop of as much as 1.2%, gold managed to recover losses as fears surrounding Trump’s aggressive tariff plans continued to encourage buying of safe-haven commodities.
