Gold Prices Soar Amid Rate Cut Expectations and Geopolitical Risks

Gold prices increased for the third consecutive session, rising by over 0.32% on Thursday due to heightened safe-haven flows amid escalating global trade tensions. U.S. President Trump announced tariffs on Canadian imports and other major trading partners, fueling market concerns. The U.S. jobless claims report was lower than expected, indicating a strong labor market despite expectations of rate cuts by the Fed.

The euro closed the week with a decline, falling towards 1.16700 on Friday, recording a nearly 1% weekly loss as trade tensions escalated and monetary policy expectations shifted. The USD strengthened against the euro, supported by risk aversion and relative yield advantages amid a cautious Fed stance.

Bitcoin reached a new high of $116,000 just days after President Trump signed a $3.3 trillion bill, rising by 6% since. The cryptocurrency’s rally reflects strong investor demand for digital assets amidst evolving macroeconomic conditions. The bill’s fiscal expansion has raised concerns over U.S. debt sustainability and fiscal discipline, driving investors towards assets like Bitcoin and gold as inflation fears rise. Analysts expect Bitcoin’s price to continue within its trend, fueled by institutional participation like BlackRock’s spot Bitcoin ETF.

Read more at Investing.com: Gold Prices Rise as Rate Cut Expectations and Geopolitical Risks Mount