Gold prices remain stable due to increase in safe-haven demand
Date
11/26/2024 2:20:36 AM
(MENAFN) Gold prices remained steady on Tuesday after a 3 percent decline in the previous session. The price stability was driven by an increase in safe-haven demand, particularly following U.S. President-elect Donald Trump's pledge to impose tariffs on all imports from Canada, Mexico, and China. This raised concerns about potential trade wars, prompting investors to seek refuge in gold.
Spot gold held steady at USD2,625.48 per ounce by 0259 GMT, recovering from a dip earlier in the session that marked its lowest price since November 18. Meanwhile, U.S. gold futures rose by 0.3 percent, reaching USD2,625.80. Analysts noted that despite the recent sell-off, gold prices were holding up relatively well, which suggests some ongoing safe-haven demand in the face of rising economic and geopolitical uncertainties.
Matt Simpson, an analyst at City Index, pointed out that while there was a significant drop in gold prices the previous day, the metal's ability to hold steady suggests investors are turning to gold amid concerns about potential future confusion, especially with Trump making headlines again. Trump's commitment to imposing large tariffs on key trading partners has heightened the risk of escalating trade conflicts.
Gold is traditionally viewed as a safe haven during times of economic and geopolitical uncertainty, such as trade wars or other crises. In addition to these developments, traders are also closely watching U.S. economic data, including consumer confidence figures and the minutes from the Federal Reserve's November meeting. There is growing speculation that the Federal Reserve might cut interest rates in December, which could further influence gold prices.
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