Gold Eyes $3,000 While Silver Surges – Is This Just the Beginning?
Trump’s Tariff Pledge Fuels Market Uncertainty
- President Trump orders new reciprocal tariffs, increasing concerns over global trade tensions.
- Investors flock to safe-haven assets, boosting gold demand.
Gold Nears Record Levels for the Third Consecutive Day
- Gold trades around $2,937 an ounce, heading for its seventh straight week of gains.
- Prices hit an all-time high of $2,942.68 earlier this week.
Analysts Predict $3,000 Gold in the Coming Months
- Citigroup expects gold to reach $3,000 within the next three months.
- Central banks, including China’s, continue adding to gold reserves.
Silver Surges as Haven Demand Rises
- Silver jumps 2.8%, outperforming gold amid rising global uncertainty.
- The metal benefits from increased investor demand for safe-haven assets and industrial use expectations.
Inflation & Fed Policy in Focus
- PCE inflation report on Feb. 28 will be closely watched for rate cut signals.
- Lower interest rates typically support higher gold prices.
Precious Metals Rally Across the Board
- Silver surges 2.8%, while platinum and palladium rise 0.7%.
- The Bloomberg Dollar Spot Index dips 0.1%, giving gold further support.
What’s Next?
- Gold’s Strength Reflects Uncertainty: Gold’s sustained rally highlights how investors turn to safe-haven assets during economic and geopolitical turmoil.
- If trade tensions and inflation fears persist, we could see further upside, potentially reaching the $3,000 target that analysts predict.
- However, if the Federal Reserve remains cautious about rate cuts, gold’s momentum might slow.
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Global Markets Stabilize on Optimism Over Gradual Tariff Negotiations
- Equities and bonds moved in narrow ranges at the close of the week as traders balanced mixed earnings and persistent US inflation data with hopeful signals from trade negotiations.
- In Europe, the Stoxx 600 edged lower despite luxury stocks like Hermès rallying on strong holiday sales.
- US futures remained steady following a near-record close, while Asian stocks, notably in Hong Kong, surged over 4% amid optimism about China’s growing AI capabilities.
- Investors found relief as President Trump signaled a “slow burn” approach to tariffs—proposing gradual, country by country negotiations that could delay severe measures—causing Bloomberg’s Dollar Spot Index to drop roughly 2.5% from February highs.
- In currencies, the yen strengthened and the pound reached its highest level this year. Meanwhile, gold stayed near record highs and oil prices fluctuated as markets digested the evolving trade outlook.