Gold prices have surged in recent days, with spot gold trading at $2,922.02 per ounce, up $2.85. The rise is attributed to increased safe-haven demand amid escalating trade tensions, as the US imposed new tariffs on Mexico, Canada, and China. Silver prices have also seen movement as silver is trading at $32.72, up 5 cents., reflecting the broader trends in precious metals markets. The gold and silver markets are being supported by a weakening US dollar and growing economic uncertainties.
The market sentiment is further influenced by recent economic developments. The European Central Bank (ECB) cut its benchmark interest rate by 25 basis points to 2.5%, marking its sixth rate reduction since June. This move comes as the ECB aims to stimulate growth in the face of persistent inflation concerns. Adding to the economic uncertainty, the Atlanta Fed’s GDPNow model has drastically revised its Q1 2025 GDP growth forecast to -2.8%, signaling potential recessionary pressures. These factors are likely to continue supporting gold and silver prices as investors seek safe-haven assets in times of economic instability.
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