Gold reaches a new historical milestone! - Reaches the value of 3 thousand dollars per ounce
Gold prices hit a new high, with Comex gold prices rising 1.5%, briefly surpassing a new record high of $3,000 (€2,764) per ounce for the first time in history. Spot gold prices rose 1.9% to $2,988 (€2,752) per ounce, marking another all-time high.
Gold is seen as a typical safe-haven asset, with its prices rising more than 13% this year amid risk aversion, a weak U.S. dollar and increased central bank purchases. Demand for safe-haven assets has surged amid economic and political uncertainty surrounding Trump’s tariffs and rising geopolitical tensions. The global economic outlook has darkened due to escalating tariff threats between the U.S. and other countries.
US President Donald Trump imposed a total of 25% tariffs on steel and aluminium imports, prompting retaliation from Canada and the EU. He also threatened to impose a 200% tariff on EU wine and other spirits in response to the bloc's plan to tax imports of US whiskey. While the escalating trade war is expected to fuel inflation, higher trade barriers and deglobalisation could slow global economic growth.
A deepening trade conflict could further exacerbate inflationary pressures while dampening economic growth, setting the stage for stagflation, a historically favorable scenario for gold as a store of value. In addition, a weaker U.S. dollar and expectations of a faster rate cut by the Federal Reserve also fueled gold’s rise. The U.S. Dollar Index (DXY), which measures the value of the U.S. dollar against a basket of major foreign currencies, has fallen more than 5% from its annual high in mid-January.
Concerns about the US economy are likely to lead to lower interest rates, and the latest weaker-than-expected inflation data have reinforced market expectations for a rate cut in June, rather than the previously forecast September. The dollar could continue to weaken against other G10 currencies as investor sentiment shifts. However, this trend may not continue if the Federal Reserve maintains a hawkish stance, as escalating trade tensions could exacerbate inflationary pressures.
Meanwhile, the euro's rise has also weighed on the US dollar, amid optimism surrounding a possible change in fiscal policy within the European Union, prompting a flight of investment from US markets. Central banks have increased their gold reserves while reducing their holdings of US government bonds. Trump's tariffs and fiscal policies aimed at reducing the government deficit have raised concerns about the US's ability to service its debt.
Investment funds have shifted away from riskier assets such as stocks and energy toward safe-haven assets, including gold, amid growing concerns about global economic growth. Risk-sensitive assets, including stock markets and crude oil, continued to fall.
Investors have also been pulling back from U.S. stock markets, particularly large-cap technology stocks, over the past month on concerns about growth. The S&P 500, the benchmark U.S. stock index, has entered correction territory for the year, down 10% from its all-time high in February. European stock markets are also expected to end the week lower due to spillover effects from Wall Street.
Crude oil prices remain near multi-year lows due to a deteriorating demand outlook, while ceasefire talks could see Russian production return to the market. Crude futures contracts, including West Texas Intermediate (WTI) and Brent, have fallen 7% and 8% respectively this year, approaching their lowest levels since December 2021.
Poll
How did this week end for the major currencies?
The US dollar, despite having a relatively negative week, has recovered points again this Friday compared to yesterday, being bought today at 91.2 lek and......
Llogara Tunnel, safety and operation improvement - ARRSH opens 311 million lek tender for maintenance
The Albanian Road Authority has announced the opening of the tender for the maintenance of equipment and operation of the Llogara Tunnel. The estimated limit......
"Global oil supply may exceed demand" - Trade tensions, OPEC+ overproduction will affect the global market
Global oil supply could exceed demand by about 600,000 barrels per day this year, the International Energy Agency said in a monthly report. This surplus......
European markets fall as Trump vows to respond to EU counter-tariffs!
European markets opened lower as global tariff tensions heated up, following US President Donald Trump's pledge to respond to EU counter-tariffs. The......
“US tariffs could deepen recession” - Germany's Central Bank warns of risks of a trade war
Tariffs on goods imported from the US could push Europe's largest economy into another recession, according to the president of Germany's Central......
What are the most imported and exported products between China and the EU?
In 2024, the EU exported goods worth €213.3 billion to China and imported €517.8 billion. This led to a trade deficit of €304.5 billion, according to the......
US-Europe trade war escalates: Trump proposes 200% tariffs on alcohol imports to the EU!
US President Donald Trump has threatened to impose a 200% tariff on wine, champagne and other alcoholic beverages imported from the EU. Trump noted that the......
Americans, "skeptical" about Trump's actions - According to the survey, the imposition of tariffs is harming the economy and markets
A majority of Americans believe President Donald Trump is being too "unruly" in his moves to "shake up" the US economy, as imposing tariffs on some of the......
