Gold prices rose on Thursday on track for the third straight session, hitting a two-week high and trading near a recent record high on strong haven demand amid mounting global trade tensions.
US inflation has also slowed down in February, bolstering the odds of a Fed interest rate cut in the first half of the year.
Prices
Gold prices rose 0.5% today to $2948 an ounce, the highest since February 25, with a session-low at $2933.
On Wednesday, gold rose 0.6%, the second profit in a row on strong heaven demand.
The precious metal hit record highs on February 24 at $2956 an ounce before entering a downward correction.
Global Trade Tensions
US President Donald Trump announced plans to escalate the global trade war through imposing additional tariffs on European commodities.
The threat comes after Trump already imposed 25% tariffs on all steel and aluminum imports, triggering strong reactions from all major US partners.
European Commission President Ursula Von der Leyen announced plans to retaliate on a variety of US products starting April 2025, including bourbon and Harley Davidson products.
US Rates
Recent data showed US consumer prices slowed down more than expected, bolstering the odds of a Fed rate cut in the summer.
According to the Fedwatch tool, the odds of a Fed 0.25% rate cut in March stood at just 3%.
However, the odds of such a cut in June are much higher at 78%.
Now traders await important US producer prices and unemployment claims data today to gather more clues.
SPDR
Gold holdings at the SPDR Gold Trust rose 3.44 tons yesterday to a total of 898.64 tons, the highest in a week.
