The price of Gold (XAU/USD) has been on the rise this Tuesday, maintaining levels above $2,930 amid growing global uncertainties. Market sentiment is being heavily influenced by peace talks between US and Russian officials taking place in Riyadh, Saudi Arabia. Russia has reiterated its opposition to Ukraine’s NATO membership, and the Kremlin has also indicated that a meeting between Donald Trump and Vladimir Putin is unlikely to occur in the near future. This uncertainty is prompting investors to flock to safe-haven assets like Gold to guard against geopolitical risks.
Additionally, US economic policies are playing a significant role in the movement of Gold prices. President Donald Trump has signaled the potential for a new 25% tariff on imported cars, as well as increases in import duties on semiconductors and pharmaceuticals. Such measures have the potential to escalate trade tensions and might lead to a slowdown in global economic growth, consequently boosting the demand for Gold.
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Meanwhile, Patrick Harker, the President of the Federal Reserve Bank of Philadelphia, has indicated that interest rates should remain unchanged as economic data has not indicated any substantial changes. This stability in interest rates could provide additional support for Gold, especially if markets begin to anticipate looser monetary policy in the future.
