Chris Weston, Pepperstone's Head of Research, noted in a recent report that gold is increasingly being used as a hedge against the uncertainty of Trump's policies. Although some traders see it as insurance against potential U.S.-EU tariff wars, the upward trend in gold prices has not reversed even with the easing of tariff threats.
Global Central Banks Turn to Gold
Weston emphasized that central banks worldwide, especially those in emerging markets, are constantly seeking opportunities to shift reserves from the U.S. dollar to gold. This trend indicates a gradual resurgence of gold's role in the global reserve system.
Outlook for Gold Prices
- Spot gold and gold futures prices are expected to reach $5,000 per ounce.
- Current prices are nearing this target, attracting a significant number of buyers.