According to Reuters, sweat gold was trading at $5198 an ounce today. A day earlier, the metal fell in price by more than 1%. Market participants were taking profits after quotes reached a three-week high.
Gold futures in the United States with delivery in April rose by 0.8% to $5,217.30 per ounce. The growth in the futures segment indicates the persistence of cautious optimism among investors.
China factor and US trade policy
The market was supported by the return of Chinese traders after a pause. China remains one of the largest consumers of gold in the world. The resumption of trading increased liquidity and demand.
An additional driver was the uncertainty around the U.S. trade policy. On Tuesday, February 24, Washington began levying a temporary 10% global tariff on imports. President Donald Trump’s administration is discussing raising the rate to 15%.
The situation became more complicated after the US Supreme Court ruling last week. It added uncertainty to the issue of further implementation of tariff measures.
The Fed’s position restrains growth
At the same time, representatives of the US Federal Reserve made it clear that they are in no hurry to change interest rates. Tight monetary policy limits the growth potential of gold. High rates make dollar assets more attractive.
The market remains sensitive to news from the US. Investors are watching the Fed’s tariff decisions and rhetoric.
So far, gold is holding above $5190 per ounce, but high volatility remains.
