FX.co ★ Gold Rises on Haven Demand

Gold surged to approximately $3,000 per ounce on Tuesday, recovering from a nearly four-week low experienced in the previous session. This increase was fueled by mounting fears that a deepening trade war could spark a global recession, thereby driving demand for safe-haven assets. On Monday, President Donald Trump announced plans to impose an additional 50% tariff on China, effective Wednesday, unless Beijing retracts its 34% retaliatory tariffs. Concurrently, the European Union has introduced a proposal for 25% counter-tariffs on a variety of U.S. products. In the meantime, investors are keenly awaiting the release of the minutes from the latest Federal Reserve meeting on Wednesday, alongside upcoming consumer inflation data on Thursday and the producer price index report on Friday, to glean further insights into the Federal Reserve's monetary policy direction. Despite a recent three-session decline, gold has gained over 13% this year.