Gold prices surge above $2,900 due to trade war and inflation fears

From Investing.com: 2025-02-11 02:30:00

Gold prices broke above $2,900 as trade war fears and inflation concerns escalated due to Trump’s new tariffs. Safe-haven demand surged, with gold hitting its seventh record high this year. Analysts predict further price increases, potentially reaching $3,250 or $3,500. XAU/USD continued to rise during the Asian session but lost some gains in early European trading. Fed Chairman Jerome Powell’s testimony and US economic reports this week may impact gold prices. Meanwhile, the euro weakened against the dollar on worries about US trade tariffs slowing eurozone economic growth.

The Japanese yen also lost ground against the dollar as investors feared higher US imports. USD/JPY trended lower since mid-January but may reverse due to new tariff threats. Japanese Prime Minister Shigeru Ishiba expressed optimism about avoiding tariffs, but the risk remains. USD/JPY was relatively stable during Asian and European trading, with traders awaiting Powell’s testimony for potential impact on the pair. Powell’s stance on inflation and US economic outlook may determine the future direction of USD/JPY.



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