FX.co ★ Gold Hits New Record Peak

Gold surged past $4,950 per ounce on Friday, reaching an unprecedented peak and poised for its most substantial weekly gain since March 2020. This increase is bolstered by enduring geopolitical tensions and a depreciating US dollar. President Trump announced that a deal with NATO secures permanent US access to Greenland, though specifics are yet unclear, with Denmark reiterating its sovereignty. In a move to ease trade tensions, Trump also withdrew planned tariffs on European imports, as the EU temporarily suspended its threatened countermeasures, although it seeks further clarification on his intentions. Economically, both the headline and core Personal Consumption Expenditures (PCE) indices rose as anticipated, reflecting that disinflation persists even as economic activity remains robust. The markets are currently anticipating two interest-rate reductions by the Federal Reserve within this year. Additionally, investors are closely watching President Trump's upcoming selection for the Federal Reserve Chair, following his completion of candidate interviews. A more dovish appointment is expected to amplify predictions for additional rate cuts.