🔔Gold hits new all-time high today fueled by US recession fears and trade war tensions
Gold is reaching new all-time highs today, rising by over 1.5% (having gained more than 2% at its peak), as demand for the precious metal remains very strong, supported by solid fundamentals. Gold has just completed its best week since 2020 and has already risen by nearly 25% this year. Compared to the 2022 lows, it has almost doubled in value. Capital flowing out of risky assets is currently seeking 'safe havens', increasingly favoring gold amid weakening confidence in U.S. debt. Fears of an economic slowdown in the U.S. and tensions in global trade are further supporting gold.
- The unpredictable policies of Donald Trump have shaken global assets, while weakening demand for U.S. debt appears to be undermining the dollar’s status as the world's reserve currency. Disappointing performance of U.S. Treasuries, which failed to serve as a traditional 'safe haven', is prompting investors to increase their exposure to gold.
- Additionally, the uncertain outlook for Federal Reserve rate cuts this year, despite a forecasted economic slowdown, is encouraging a preference for gold over bonds.
- The ongoing trade war is heightening geopolitical tensions, and its final outcomes remain unknown, although it is almost certain that economic growth will slow and inflation will rise. In such an environment, both long-term investors and capital managers, including hedge funds, are increasingly turning to gold as possibly the best remedy against the uncertainty fueled by Donald Trump's policies.
Today’s U.S. data showed a surprising month-over-month decline in PPI inflation (along with a much weaker-than-expected annual rate) and a sharp drop in consumer sentiment. U.S. consumer confidence plunged in March to the lowest levels since 2022, with the expectations index now even lower than during the 2008 financial crisis and the COVID-19 pandemic. Over 67% of respondents expect unemployment to rise — the highest reading since 2009. Gold is benefiting from the persistent economic uncertainty.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appGOLD (Daily Chart - D1)
Gold climbs to new all-time highs above $3,230 per ounce, supported by a weaker dollar and disappointing performance of U.S. Treasuries, which have 'failed' to act as a hedge against market volatility and the policies of Donald Trump.
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
