Gold prices broke another record as the week started, just ahead of President Trump's announcing more taxes on foreign products. Traders worry these new taxes might spark a massive trade battle between nations. Gold jumped almost one percent Monday morning to $3,110 for a single ounce. This beats the previous high set last Friday and marks four straight weeks of rising gold prices.
Trump added a 25% tax on foreign cars last week. Market watchers expect him to announce even more taxes this Wednesday. Gold has climbed 18% since January and has broken at least 15 different records this year. Prices keep climbing because national banks buy tons of gold and because people want something safe when world events look scary or the economy seems uncertain. Gold remains popular even though experts believe the Federal Reserve will only cut interest rates twice this year. Gold usually does better when rates fall because, unlike savings accounts or bonds, gold pays you nothing just for holding it.
Several big banks have raised their predictions for how high gold might go. Goldman Sachs recently changed its forecast to $3,300 an ounce by December. They say national banks are buying more gold than expected, and investors keep putting money into special gold funds. By late morning trading in Singapore, gold sold for $3,110.07 per ounce. The American dollar dropped 0.2% in value. Silver, platinum, and palladium prices all increased as well.
Trump added a 25% tax on foreign cars last week. Market watchers expect him to announce even more taxes this Wednesday. Gold has climbed 18% since January and has broken at least 15 different records this year. Prices keep climbing because national banks buy tons of gold and because people want something safe when world events look scary or the economy seems uncertain. Gold remains popular even though experts believe the Federal Reserve will only cut interest rates twice this year. Gold usually does better when rates fall because, unlike savings accounts or bonds, gold pays you nothing just for holding it.
Several big banks have raised their predictions for how high gold might go. Goldman Sachs recently changed its forecast to $3,300 an ounce by December. They say national banks are buying more gold than expected, and investors keep putting money into special gold funds. By late morning trading in Singapore, gold sold for $3,110.07 per ounce. The American dollar dropped 0.2% in value. Silver, platinum, and palladium prices all increased as well.
