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QUGold just hit its high amidst Trump’s threat of import taxes ok steel and aluminium.
What other factors contributing to the rise:
USA dollar continues to rise as Trump started putting tarrifs on countries like china, mexico, canada.
These higher tariffs are being imposed to de- incentivise the imports from these countries and to reduce US deficit with these countries.
These export driven countries are dependent on their trade and thus higher tariffs resulting in lower demand would hurt their economies subsequently hurting their currencies. This pushes gold , as a safe heaven asset buying kicks in by central banks to support currencies.
While higher dollar results in lower gold prices, the geopolitical uncertainty and higher inflation will further drive the gold demand.
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