Gold hit a new high as Fed Chairman Jerome Powell's warning about the impact of the trade war added to volatility on Wall Street, sending stocks and the dollar down sharply.Gold rose 0.4% to $3,357.78 an ounce, after jumping 3.5% on Wednesday for its biggest one-day gain since March 2023. The dollar fell to a new six-month low as traders were once again battered by a flurry of tariff news and Powell stifled hopes that the Federal Reserve would act quickly to reassure investors, underscoring the unpredictability of Washington's tariff announcements.Gold is up nearly 28% this year, outpacing the 27% gain it saw in 2024, as the escalating trade war raised fears of a possible global recession. Meanwhile, the Trump administration is preparing to put pressure on countries to restrict trade with
Sky’s the Limit? Will Gold Hit $3500 or Time to Exit?
Goldman Sachs’ commodities research team raised their year-end gold price forecast to $3,700, noting upside tail risks that could push prices as high as $4,500. UBS responded to Goldman’s outlook by also revising its gold forecast upward to $3,500. If a recession trade emerges, is gold the best choice?
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