Gold Stays Strong Above $3,200 Amid Global Tensions
Gold is holding strong above $3,200 per ounce. This is because many investors are feeling unsure about the world economy and are choosing gold as a safe place to put their money.
There are a few reasons for this. First, there’s tension around the world, like the ongoing war between Russia and Ukraine. Also, former U.S. President Donald Trump said he wants to double tariffs on steel and aluminum. This kind of news usually makes people nervous, so they turn to gold.
Another reason gold is staying strong is the U.S. dollar has become a little weaker. When the dollar goes down, gold becomes cheaper for people using other currencies, which helps push demand up. Also, many people believe the U.S. Federal Reserve might cut interest rates later this year. If that happens, gold becomes more attractive because it doesn’t pay interest, so lower rates make gold a better choice.
Central banks in countries like China and Poland are also buying large amounts of gold to add to their reserves. This buying helps keep gold prices high.
Experts at UBS have raised their forecast, now expecting gold to stay around $3,200 due to strong demand and global uncertainty.
Impact:
Gold might remain strong if global risks continue and central banks keep buying. But if things calm down or interest rates change, prices could move differently.