May 6, 2025
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Economy

Gold prices rose to a two-week high

Gold prices rose to a two-week highTrump’s tariff threats boosted demand for gold as a safe-haven asset, pushing prices to a two-week high. Attention is also focused on the Fed’s interest rate decision.”, — write: unn.ua

Gold prices rose to a two-week high on Tuesday as threats of tariffs from US President Donald Trump boosted demand for a safe-haven asset, while the Federal Reserve’s policy decision this week was also in focus, Reuters reports, UNN writes.

DetailsSpot gold rose 1.2% to $3,372.01 per ounce at 08:10 GMT (11:10 Kyiv time) after hitting its highest level since April 22 earlier in the session.

US gold futures rose 1.7% to $3,379.10.

“The structural factors that have supported gold in recent weeks are still present – trade tensions have not been removed, concerns about the dollar as a reserve currency remain,” said UBS analyst Giovanni Staunovo.

“We still expect gold to test the $3,500 mark again this year,” he said.

On Sunday, Trump announced the introduction of a 100% duty on films made abroad, but revealed few details about how such a levy would work.

On Monday, the US President said he intends to announce the introduction of pharmaceutical duties within the next two weeks.

Gold, which is used as a safe haven in times of political and financial uncertainty, reached an all-time high of $3,500.05 an ounce last month, boosted by central bank purchases, tariff war fears and strong investment demand.

Gold prices rose above $3,500 for the first time22.04.25, 18:11 • 6812 views

While the US Federal Reserve is expected to keep rates unchanged on Wednesday, comments from agency head Jerome Powell will be closely monitored to see how the central bank’s rate will change.

“As the rate is expected to remain unchanged, attention will be focused on how policymakers assess the growing tariff risks and their implications for the rate forecast in the second half of the year,” said IG market strategist Yeap Jun Rong.

Traders are pricing in 75 basis points of rate easing this year, with the first move possible in July, LSEG data showed.

Spot silver rose 1.3% to $32.92 per ounce, platinum rose 1.7% to $975.75, and palladium rose 0.8% to $948.

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