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Kevin Hassett, an advisor at the US National Economic Council, pointed out that declining US Treasury yields signal expectations of lower inflation, further reinforcing Gold’s bullish outlook.
Despite the Federal Reserve maintaining a hawkish stance on monetary policy, Gold has defied traditional trends. Typically, higher rates dampen Gold’s appeal, but the market’s risk-off sentiment continues to support the metal’s rise.
Geopolitical Risks and Tariff Fears Drive Demand for Gold
Beyond economic data, geopolitical concerns and trade policies have fueled Gold’s demand. US President Donald Trump has hinted at new reciprocal tariffs, specifically targeting countries imposing trade barriers on US imports.
The looming threat of auto tariffs by April 2 has intensified fears of a global trade war, increasing Gold’s attractiveness as a hedge against uncertainty.
Meanwhile, negotiations between the US and Russia regarding the ongoing Ukraine conflict have had little effect on Gold’s momentum. Typically, progress in peace talks could reduce safe-haven demand, but market sentiment remains focused on inflation trends and central bank policy rather than diplomatic developments.
Silver Joins the Rally, Holding Above $32
Silver (XAG/USD) is also riding the precious metals uptrend, trading at $32.08 as demand for safe-haven assets rises. Weakness in the US Dollar Index (DXY) has provided a strong foundation for Silver’s rally, while broader industrial demand remains steady.
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