Yahoo Finance UK’s Pedro Goncalves writes:
Gold prices retreated after touching an all-time high of $2,817.22 over the weekend after tariff fears and inflation risks fuelled renewed safe-haven demand.
The spot price of gold rose was muted at $2,800.17 per ounce, while gold futures slipped to $2,830.70.
Despite the pullback, some analysts argue that gold remains an attractive safe haven asset. The recent surge in demand for the precious metal follows fears sparked by Trump’s tariff announcements, which have rattled equity markets and led investors to seek refuge in more stable assets.
Commodity experts have warned that the gold market could experience further volatility in the short term, with the precious metal caught in a balancing act. On one hand, it is seen as a safe haven during periods of geopolitical uncertainty, but on the other, it is negatively correlated with the strength of the dollar and rising US interest rates.
Economists have raised concerns that Trump’s tariffs will push up the cost of imported materials for US manufacturers, increase prices for American consumers, and disrupt global trade flows. Despite these warnings, Trump insisted during a Friday briefing in the Oval Office that “tariffs don’t cause inflation”.
