The anchor underpinning trust in the U.S. monetary system, that is the confidence in the Federal Reserve's ability to keep consumer price changes on track, is facing its most severe test in decades, as inflation expectations spiral.
Gold has hit a record high above $3,000 amid economic uncertainty. A breakout above $3,100 could push it toward $3,500, while support lies near $2,800. Inflation and Fed policy will decide the next move.
Gold price (XAU/USD) attracts follow-through buyers for the second consecutive day and climbs to a fresh record high, around the $3,077-3,078 area during the Asian session on Friday.
With risk assets wobbling and the spectre of a full-blown trade war back on the radar, gold is doing what it does best—playing its safe-haven role to perfection.
A discussion about the current market environment, emphasizing how political uncertainty, particularly around tariffs and fiscal policy, is creating unpredictable “jump risk” for equities.
Gold has broken above $3,000 and appears poised to push even higher. So far, platinum has not followed gold’s lead but seems to be watching from the sidelines.
President Trump yesterday ordered the implementation of a new 25% tariff on the import of any vehicle not manufactured in the USA, sending stock markets lower, especially US indices.
