Gold prices stable amid trade tensions and rate cut expectations, boosted by weakening dollar

From Investing.com: 2025-04-09 03:10:00

Gold prices remained stable as US Treasury yields rose, but the weakening dollar and US-China trade tensions supported demand for gold as a safe-haven asset. Investors are bullish on gold due to trade tensions and the possibility of lower US interest rates. Rising rate cut expectations and a falling US dollar are expected to boost gold prices. The market is closely watching for any tariff-related news and the upcoming FOMC minutes for further clues on US interest rates.

The euro strengthened against the US dollar following reports of a coalition agreement in Germany, easing fears of political instability. The US dollar weakened amid recession fears due to trade conflicts initiated by President Trump’s tariffs. The flight to safe-haven currencies has weakened the dollar, pushing the EUR/USD exchange rate higher. Investors await more tariff-related news and the FOMC minutes for insights into US rate cuts.

The Japanese yen surged against the US dollar as investors flocked to safe-haven assets amid fears of a global recession. Trade tensions between the US and China have intensified, benefiting the yen and the Swiss franc. Japanese Finance Minister Katsunobu Kato mentioned that trade negotiations with the US could include discussions on exchange rates. USD/JPY may continue to decline if the US pressures Japan to reverse the yen’s decline. The market awaits tariff-related news and FOMC minutes for clues on US monetary policy.



Read more at Investing.com: Gold Prices Hold Strong Amid Trade War Fears and Fed Rate Cut Bets