Gold prices rose sharply amid increased safe-haven demand as Asian markets reacted to uncertainties surrounding US China trade relations and renewed geopolitical conflicts involving Russia and Ukraine.

Current Price Movements

• Spot Gold: Up 1.3% to $3,331.34 per ounce as of 01:37 ET.

• June Futures: Increased by 1.4%, now priced at $3,341.25 per ounce.

• Record High: Prices near this week’s peak of $3,500 per ounce.

• JP Morgan Forecast: Predicts gold could reach $4,000 per ounce by 2026.

Driving Forces Behind Gold Price Movements

Trade Uncertainty

• Stalled Tariff Discussions: Trump’s conditional tariff reductions amplify skepticism in the market.

• Bessent’s Warning: Emphasized that trade negotiations will require significant time and effort.

• Impact of Currency Valuations: A weaker dollar is fueling gold’s appeal among investors.

Geopolitical Concerns

• Russia Ukraine Tensions: Escalating clashes have led to increased investment in traditional safe havens like gold.

Federal Reserve Dynamics

• Powell’s Position: Easing threats to dismiss Powell have maintained attractiveness for gold investments.

Future Considerations for Gold Traders

1. Developments in Ukraine: Continued hostilities may trigger further inflows into gold.

2. Concrete Trade Announcements: Watch for actual plans regarding tariff reductions that could impact gold prices.

3. Inflation Reports: US CPI and PCE data will clarify the inflation narrative.

Investors should remain vigilant as they track macroeconomic indicators and geopolitical shifts, which are pivotal for future movements in gold prices.