Gold prices hit record highs due to trade war uncertainty, with mixed short and medium-term outlooks.

From Investing.com: 2025-02-04 02:11:00

Gold prices hit a record high, increasing by 0.45% amid concerns over inflation and economic slowdown due to Trump’s tariffs. J.P. Morgan predicts bearish contagion could impact gold in the short term, but tariffs will be bullish in the medium term. XAU/USD remains relatively stable, with resistance at $2,812. Traders should watch for updates on US tariffs and the US JOLTS Job Opening report for market direction.

The euro lost 0.17% against the USD as Trump’s tariffs initially boosted the dollar. EUR/USD faces pressure from trade-related shocks and underperformance compared to the US economy. The currency remains sensitive to global trade dynamics, and yesterday’s US economic data suggests stronger growth than the eurozone. Traders should monitor US tariff news and the US JOLTS Job Opening report for potential market movements.

The Japanese yen remained stable against the USD despite fluctuations, benefiting from its safe-haven status amid trade tensions. However, USD/JPY is in a mid-term downtrend due to hawkish BOJ policy. Japan’s economy faces risks from global trade disruptions and US–China trade tensions. Traders should watch for updates on US tariffs and the US JOLTS Job Opening report for potential shifts in USD/JPY. China retaliated with tariffs on US imports, renewing trade war fears.



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