Gold prices reached new records yesterday as markets reacted to President Trump's trade messages. The precious metal hit $3,245 per ounce, beating Friday's record. Last week, gold gained over 6 percent as the dollar weakened against other currencies. Markets seemed confused after Trump announced plans for new duties despite earlier suggesting relief on consumer electronics. When the dollar falls, gold becomes cheaper for investors using other currencies.
Gold values climbed more than 20 percent this year as investors sought safer places for their cash. Trump's changing trade policies caused major movements in stocks, bonds, and currency markets. Many fear these actions might trigger a worldwide economic downturn. Investors sell American government bonds, showing less interest in US assets. Some question whether US debt remains safe during uncertain times.
Market expert Chris Weston from Pepperstone Group said gold clearly benefits from dollar debates. Traders think gold looks risky to bet against but also expensive to buy more. Investors watch central banks in Singapore and Europe that might ease money policies soon. When interest rates fall, gold often gains value because it pays no interest itself.
Gold values climbed more than 20 percent this year as investors sought safer places for their cash. Trump's changing trade policies caused major movements in stocks, bonds, and currency markets. Many fear these actions might trigger a worldwide economic downturn. Investors sell American government bonds, showing less interest in US assets. Some question whether US debt remains safe during uncertain times.
Market expert Chris Weston from Pepperstone Group said gold clearly benefits from dollar debates. Traders think gold looks risky to bet against but also expensive to buy more. Investors watch central banks in Singapore and Europe that might ease money policies soon. When interest rates fall, gold often gains value because it pays no interest itself.
