Gold prices rise as investors turn to safe-haven assets due to trade uncertainties and low inflation

From Investing.com: 2025-03-13 04:40:00

Gold prices rose by 0.55% as concerns over trade tariffs and declining U.S. inflation drove investors towards safe-haven assets like gold. The Fed is expected to cut interest rates due to slowing inflation, leading to increased appeal for gold. The potential for escalating trade tariffs and a dovish Fed support the rally in gold prices.

The euro lost 0.29% against the USD as trade uncertainties persist, impacting market confidence in the Eurozone. Trump’s threats of additional tariffs on EU goods have added to the geopolitical tensions. The euro’s trajectory depends on resolving conflicting forces like German fiscal plans, the U.S.-EU trade war, and the war in Ukraine.

The Japanese yen weakened by 0.32% against the USD due to safe-haven flows amidst trade tariff tensions and risk-off sentiment. The yen remains a preferred safe-haven asset during periods of market volatility. The divergence in monetary policy expectations between the U.S. and Japan continues to support the yen, despite interest rate differentials. Today, focus remains on U.S. macro statistics influencing market sentiment.



Read more at Investing.com: Gold Prices Rise as Fed Rate Cut Expectations Grow