Trade Tensions Ignite Gold Rally-Is This the Start of a New Bull Market?

Gold prices rallied on Thursday as buyers poured into the safe-haven metal following the US Federal Reserve's warning about increasing economic uncertainty with inflation and labor market risks muddying the outlook. Demand was also driven higher by expectations this weekend's high-stakes US-China trade talks will reset global economic sentiment.

 

Key Highlights:

Other valuable metals experienced mixed action: silver was unchanged at $32.46 an ounce, platinum increased 0.5% to $978.56, and palladium fell 0.7% to $965.78.

Gold is expected to continue being resilient if the Fed gives hints of rate cuts later in the year or if global trade tensions intensify further.

 

As the Fed's caution and uncertainty in global trade take center stage, gold's safe-haven demand is burning brighter than ever.

 

Sources: Economic Times, Reuters, FXStreet