Global gold rose ahead of Trump’s inauguration
reported by Mehr News Agency The global gold price began its work on Monday with a price correction and it had gone down to $2,689 and 20 cents, crossing the $2,700 mark and reaching $2,705 and 60 cents per ounce. Compensating initial losses at the beginning of trading did.
The rally comes as investors prepare for the inauguration of US President-elect Donald Trump today. Analysts predict that Trump’s proposed trade tariffs could raise inflation and trigger trade wars, which in turn could boost gold’s appeal as a tool to fight inflation.
Last week, reports of lower-than-expected U.S. core inflation, along with weaker data on producer price inflation and retail sales, raised expectations for further rate cuts by Federal Reserve this year. Lower rates lead to lower opportunity cost of holding gold without interest, and this makes gold more attractive to investors.
However, the easing of tensions in the Middle East had a negative impact on the demand for safe-haven assets. After the Israeli regime released the first group of 90 Palestinian prisoners on Sunday in exchange for three hostages released from Gaza, a ceasefire began after 15 months of fighting. These developments reduced the demand for gold as a safe haven for capital.
