
Etribe Concepts.
February 25, 2025 at 10:27 AM
*Gold hovers near record high on Trump tariff worries*
Gold held steady near a record high on Tuesday, underpinned by safe-haven demand on concerns that U.S. President Donald Trump’s tariff plans could fuel inflation and trigger a major global trade war.
Market participants may be back to factor for tariff risks, as the extended deadline for Mexico and Canada tariffs approaches next week
Trump said on Monday tariffs on Canadian and Mexican imports were “on time and on schedule” despite efforts by the countries to beef up border security and halt the flow of fentanyl into the U.S. ahead of a March 4 deadline.
Meanwhile, investors and economists expect the U.S. Federal Reserve to respond “strongly and systematically” to changes in inflation and the labor market.
“This week’s lineup of Fed policymakers may deliver some hawkish rhetoric, but with market expectations already pricing in a prolonged rate hold over the next two meetings, the impact on gold prices may be more contained,
Gold is considered a safe investment during economic and political uncertainties, and thrives in a low interest rate environment.
*Etribeconcepts Group*
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