FX.co ★ Gold Approaches Historic Highs

Gold prices climbed toward $3,030 per ounce on Thursday, nearing historic levels, buoyed by its status as a safe haven following the announcement of new US auto tariffs. These developments have heightened concerns about reciprocal measures expected next week. President Trump reiterated his commitment to imposing a 25% tariff on all imported cars, light trucks, and certain auto parts, fueling fears of an escalating trade war and potential global economic consequences. Meanwhile, the Federal Reserve maintained its December forecast for two interest rate cuts by the end of the year, albeit with a note of caution. Minneapolis Fed President Neel Kashkari acknowledged improvements in inflation control, yet emphasized the necessity of additional measures, aligning with Chair Jerome Powell's position that rate reductions are not forthcoming. Investors are now focused on the forthcoming release of the Personal Consumption Expenditures (PCE) report, the Federal Reserve's preferred measure of inflation, for further policy direction.