Gold prices have reached a record high as trade voltage escalates

Gold has risen to a new record height, supported by rising tensions between the United States and China, and bet that the Federal Reserve will make two extra interest rate cuts this year. Bullion prices jumped to a peak of $ 4.185 an ounce, while the place was rising silver price after a volatile day that saw that it jumped to an unprecedented record level of more than $ 53.54 per ounce, before he dropped sharply amid signs that the historical pressure in the market began to subside. The US Treasury yields dropped to their lowest levels in weeks on Tuesday, after Federal Reserve chairman Jerome Powell indicated that the US central bank was on track to implement an extra quarterly point later in the month. Precious metals, which do not offer a yield, often benefit from lower yields and lower borrowing costs. Meanwhile, a cautious mood swept global markets and raised Gold’s appeal as a safe haven after US President Donald Trump said he could stop the oil trade with China. His statements have introduced new tensions in relations between the two largest economies in the world, while Beijing promised to respond after Washington threatened last week to impose extra 100% on Chinese goods. Also read: Trump and XI ignite a new trade crisis and the global economy is on fire. A lack of liquidity sparks sparks sharp fluctuations in the silver market. The Silver Market is a witness to a scarcity of liquidity in London, which causes a global race to buy the metal and pushing reference prices to rise above futures in New York. The difference between the two markets narrowed on Tuesday after prices dropped in London, and the cost of silver loans in the British capital began to decline, although they remained at very high levels. Traders remain in a state of anticipation before the release of the results of the US administration’s investigation, known as “Article 232” in vital metals, including silver, platinum and palladium. The investigation revived the fear that it would be subject to new customs duties, although it was officially excluded from the duties in April last year. The four most important precious metals have jumped by between 58% and 80% since the beginning of the year, in a rally that dominated commodity markets. Gold’s profits were based on purchases from the central bank, increased ETF stake and interest rate cut by the federal reserve. A major demand for safe ports demand for safe havens is supported by recurring trade tensions between the United States and China, threats to the independence of the Federal Reserve and the US government’s downtime. Investors have also turned to precious metals to protect their wealth from the risk of fiscal deficits exacerbating, a phenomenon known as a ‘valuation trade’. Spot Gold trades 0.9% higher at $ 4,180.83 per ounce at 09:16 o’clock in Singapore, while the Bloomberg Dollar Index fell slightly. Silver rose by more than 1%, along with platinum and palladium.