FX.co ★ Gold Extends Rally

Gold prices have surged to $5,040 per ounce as of Tuesday, following an unprecedented peak of over $5,100 in the previous day’s session. This rise is largely attributed to robust demand for safe-haven assets amid rising trade and geopolitical tensions. On Monday, President Trump announced the possibility of increasing tariffs on automobiles, lumber, and pharmaceutical products imported from South Korea, escalating some duties on various goods from 15% to 25%. This move is a response to stalled progress on a trade agreement announced last year. Meanwhile, all eyes are on the U.S. Federal Reserve's two-day policy meeting, commencing today. Although it is widely anticipated that interest rates will remain stable, market participants are keenly interested in Federal Reserve Chair Jerome Powell's comments, especially as the White House intensifies its push for rate reductions. Gold has appreciated nearly 17% this year, bolstered by the so-called debasement trade, as investors shift away from currencies and bonds due to fiscal uncertainties.