Gold nears $3,400 as geopolitical risk and tariff tensions fuel flight to safety – Commerzbank
Gold has been showing strength for some time now: it is currently scratching at the $3,400 per troy ounce mark again, Commerzbank's commodity analyst Barbara Lambrecht notes.
Gold strengthens amid Ukraine-Russia escalation
"Gold recently received a boost from the escalation of the trade conflict after the doubling of US import tariffs on steel and Aluminium came into effect on Wednesday night. In addition, there is a threat of escalation of the war in Ukraine after Ukraine destroyed numerous fighter jets deep inside Russian territory a few days ago and, according to its own statements, attacked and severely damaged the bridge to Crimea, which is important for Russia."
"Other price drivers include growing concerns about the sharp rise in US government debt and growing doubts about the status of the US dollar as a safe haven. Today's US labour market data could influence expectations of a Fed interest rate cut, which could also have an impact on the Gold price."
"If the data is stronger than expected, the recent rise in expectations of an interest rate cut is likely to subside, which would weigh on the Gold price."
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FXStreet Insights Team
FXStreet
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