Gold prices are rising in the midst of the fear of slowing down the US economy

Gold prices rose after the sharp decline last week, as investors evaluate economic expectations, while US President Donald Trump is preparing to implement customs definitions on the major commercial partners. Gold was traded near $ 2870 a ounce, after scoring the first weekly loss in 2025, when some traders made a profit after a record start for the year. Trump is close to 25% definitions on Canada and Mexico early this week, in addition to doubling customs duties on China. The fear has increased that these steps, which are already beginning to show signs of slowdown, could weaken a scenario that increases the attractiveness of precious metals as a safe haven. The return of concerns about the health of the economy has raised expectations in the market that the Federal Reserve is to lower interest rates, which have raised the attractiveness of gold, as it originally does not benefit. Investors are still concerned about inflation, as the proposed customer tariffs Trump threatens to keep inflationary pressure high, which caused the US dollar to rise last week. The dollar increase leads to an increase in the cost of gold for foreign investors, as the price assessment in US dollars. Fear of inflation recession that supports gold. The recent US economic data shows increasing fear of the United States entering the “inflationary recession” phase, a situation characterized by poor economic growth with high expansion. It can provide extra support for gold, which is one of the assets that retains its value during periods of economic uncertainty. The immediate gold price rose 0.4% to $ 2,870.26 per gram at 08:02 in Singapore, after ending a 2.7% decline last week. The “Bloomberg” index of the dollar immediately fell 0.1%, while the prices of silver, platinum and Albadium gains.