Gold prices climbed to around $2,865 in Monday's Asian session, driven by escalating trade tensions and a renewed safe-haven demand. The People's Bank of China's continued gold purchases add further support to the precious metal's upward trajectory.
Gold prices surged to around $2,865 during the early Asian trading session on Monday, fueled by escalating trade tensions and a growing appetite for safe-haven assets. US President Donald Trump announced his intention to impose reciprocal tariffs on numerous countries by Monday or Tuesday, a move that immediately ignited concerns about a global trade war . Investors, seeking protection from market volatility, flocked to gold, a traditional safe haven.
\Adding to the upward momentum, China's central bank extended its streak of gold purchases for a third consecutive month in January. This significant development bolstered the gold market, as China is the world's largest consumer of gold. The People's Bank of China (PBOC) increased its gold reserves to 73.45 million fine troy ounces at the end of January, up from 73.29 million in the previous month. This consistent accumulation of gold by China's central bank is widely seen as a strategic move to diversify its foreign reserves and hedge against global economic uncertainties. \Market analysts and economists point to several key factors driving gold's recent price surge. The ongoing uncertainty surrounding Trump's trade policies, coupled with the potential for a global trade war, has fueled investor anxiety and prompted a shift towards safe-haven assets. The PBOC's continued gold purchases, reflecting China's growing economic clout and desire for financial stability, further support the upward trend. However, some analysts caution that the strong US labor market, indicated by a 143,000 job increase in January and a 4% unemployment rate, might prevent the Federal Reserve from cutting interest rates. Such a scenario could potentially strengthen the US dollar and exert downward pressure on gold prices
Commodities GOLD PRICE GOLD MARKET TRADE WAR TARIFFS SAFE HAVEN CHINA CENTRAL BANK US ECONOMY FEDERAL RESERVE
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