Gold prices soared to new lifetime highs near $2,950 on Wednesday, driven by escalating trade war fears. The precious metal's climb reflected growing uncertainty in the global market, as investors sought safe-haven assets amidst geopolitical tensions. Meanwhile, in the currency market, the GBP/USD pair remained steady above the 1.2600 mark during the European session, following the release of the UK's inflation data.
The United Kingdom's annual CPI inflation rose to 3% in January, up from 2.5% in December, signaling increased price pressures in the economy. This development comes as Michele Bullock of the Reserve Bank of Australia (RBA) commented on the effectiveness of higher interest rates. The RBA implemented its first rate cut since 2020 but clarified that this move does not indicate a series of forthcoming reductions.
Market participants have turned their attention to mid-tier US economic data and the Federal Open Market Committee (FOMC) Minutes. The US Dollar has faced pressure, with Fed rate cut bets keeping dollar bulls on the defensive. Despite previous gains, the EUR/USD exchange rate has retreated after surpassing the 1.05 threshold last week, marking its highest level since late January.
Investor sentiment has been further affected by ongoing Russia-Ukraine negotiations, which have introduced additional volatility into global markets. In the midst of these developments, the preliminary Purchasing Managers' Index (PMI) figures for February are anticipated on Friday, potentially providing new insights into economic activity.
In the cryptocurrency realm, Maker (MKR) witnessed a 6% increase, trading around $1,189 on Wednesday. Data from Artemis indicated that MKR generated $10 million in revenue on February 10, reflecting robust performance amid broader market fluctuations.