Gold price is temporarily off after a record increase
The future gold contract adjusted slightly today after a spectacular three -day increase, with an increase of 8.34%. This modest discount is mainly profit after gold price soared to unprecedented high levels.
The strong gain of this precious metal starts on Wednesday, on 9.4, when the future gold contract is open at 2,982.74 USD/ounce. At the end, the price increased by 100.21 USD (equivalent to 3.38%) to US $ 3,082.95/ounce. The rising momentum continued on Thursday with an increase of US $ 92.41, and added 62.56 USD on Friday, bringing gold price to a new record of 3,210.92 USD/ounce. Of the three sessions, the future gold price increased by about 257 USD.
The reduction of 28.4 USD today, bringing the June contract price to 3,226.90 USD/ounce, almost does not significantly affect the recent rising momentum. For comparison, gold price should be reduced to 3,195 USD to close the opening level on 3.4 - before the sell -off phase, the price to push the price from 3,196 USD to 2,998 USD on 7.4.
Relaying tariffs, gold price prospects are still optimistic
Since 4.2, the dramatic increase of gold price has been closely related to the tough tariff policy of US President Donald Trump. Since the first tax rates for China were applied, gold prices have increased by about 323 USD - the majority of them come from the developments related to Mr. Trump's tariff program.
The story began from the inauguration speech on January 20, when Mr. Trump pledged to impose taxes on imported goods to "enrich the American people". On 1.2, he signed the executive order of 10% tax on goods imported from China and 25% for goods from Mexico and Canada, starting to take effect from 4.2.
However, on March 3.2, he agreed to postpone 30 days for Mexico and Canada after the two countries pledged to strengthen border security and anti -drug. The tax rate of 10% with China is still valid on 4.2, with the gold price that closed that day at 2,904 USD/ounce.
The tension continued to escalate when the White House on 10.4 confirmed the 125% tax rate that Mr. Trump previously announced that it actually up to 145% when adding the current 20% tax. China has quickly responded to 125% tax on goods imported from the US, increasing trade tensions between the two largest economies in the world.
This precious metal has shown impressive power when increasing about 350 USD in just over two months. Even when gold entered the accumulated phase, the foundation factors show that the price will continue to increase the trend soon.
We forecast the minimum goal for the June gold contract is US $ 3,297/ounce, with the highest increase of up to 3,500 USD/ounce in the next 60 days. With the context of global economic instability and escalating trade tensions, gold - the leading shelter is expected to continue sucking cash flow in the near future.
