Gold remains at the center of attention as one of the most attractive safe-haven assets, extending its bullish rally for the second consecutive session and trading near its all-time high of around $2,940 per ounce.
This performance is particularly noteworthy considering it has occurred despite the rebound in the U.S. dollar and the rise in Treasury yields, with the 10-year benchmark seemingly finding support around the 4.5% level.
The decline of over 20 basis points from last week’s peak has provided support to investors, fueling appetite for the precious metal.
As trade uncertainty persists and geopolitical tensions remain unresolved, gold shines as a barometer of market caution.
The recent Trump administration measures on reciprocal tariffs—which, if implemented, could impact more than 17,000 products—keep market participants on edge.
If these measures remain pending final implementation, the possibility of them coming into effect reinforces global anxiety, driving demand for traditional safe-haven assets like gold.
Meanwhile, the possibility of progress in peace negotiations between Russia and Ukraine offers a glimpse of lower global volatility in the future. However, skepticism remains regarding the initial exclusion of Ukraine and Europe from the discussions, which could delay any definitive resolution. Thus, geopolitical tension remains a key factor supporting gold prices.
Additionally, Federal Reserve monetary policy acts as a counterbalance. Comments from some Fed officials suggest caution regarding potential rate cuts, as inflationary pressures persist.
In the short term, attention is focused on the next psychological barrier of $3,000 per ounce.
If the upward pressure and demand for defensive assets continue, gold could solidify its hold on this key threshold. The precious metal is on its way to becoming the market’s protagonist if volatility persists. With eyes on the evolution of U.S. trade policy and the development of international negotiations, gold is positioning itself as the ultimate safe-haven asset in this global risk environment.
