The escalating China-US trade war has prompted investors to seek refuge in the safety of gold, pushing its price near $2,870. With bulls eyeing the $2,900 mark, gold is poised to extend its gains. On Wednesday, the precious metal's value rose more than 0.90%, reflecting the market's growing unease over geopolitical tensions and the weakening US Dollar.
The current environment is marked by falling US Treasury bond yields, further contributing to gold's appeal as a safe haven. As President Trump's initial weeks in office come under scrutiny, concerns are mounting over his potential policy moves. The European Union may be next in line as a tariff target, exacerbating trade tensions on a global scale.
In the financial market, the XAU/USD trading pair hovers close to $2,870, signaling a robust demand for gold amidst mounting uncertainties. Investors are increasingly drawn to gold's reliability, with many betting on the price climbing to $2,900 in the near future. This trend underscores gold's enduring status as a refuge in times of economic and political turmoil.
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