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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/gold-retreats-from-peak-as-trade-tensions-ease-eyes-on-fed-moves-and-jobs-data/
Gold prices dipped from historic highs this week after the Trump administration granted a temporary exemption to Canada and Mexico from steep auto tariffs, easing immediate fears of a spiraling trade conflict.
The reprieve, valid for one month, lifted market sentiment and dulled demand for safe-haven assets like bullion. Analysts note the retreat reflects short-term optimism but warn the rally’s fate hinges on unresolved geopolitical risks and looming economic headwinds.
While the tariff pause offered relief, retaliatory threats from China and other trading partners linger, keeping concerns over global growth—and gold’s appeal as a hedge—alive. Escalating trade barriers could simultaneously stifle economic expansion and fuel inflation, pressuring central banks to tighten monetary policy. Such a scenario might dampen gold’s upside, though prolonged uncertainty could reignite buying.
Mixed U.S. economic signals further cloud the outlook. Strong services sector data contrasts with softening labor metrics, including lackluster private job growth and rising unemployment claims. Markets now price in a 70% chance of a Federal Reserve rate cut by June, per CME FedWatch data. Lower rates typically buoy gold, which lacks yield, but the metal’s trajectory remains tethered to macroeconomic crosscurrents.
All eyes now turn to Friday’s Nonfarm Payrolls report. A robust jobs figure could strengthen the dollar, pressuring gold, while weaker numbers may revive bets on Fed easing and safe-haven demand. “Gold’s caught between a dovish Fed and a cooling economy,” said Marek Streible, chief market strategist at Blue Line Futures. “Until trade risks fade or growth stabilizes, volatility will dominate.”
The metal’s tug-of-war underscores its dual role: a shield against instability and a casualty of shifting rate expectations. As investors weigh tariffs, data, and central bank signals, gold’s next move hinges on which force—fear or faith—gains the upper hand.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/gold-retreats-from-peak-as-trade-tensions-ease-eyes-on-fed-moves-and-jobs-data/
