FX.co ★ Gold Rises on Trade and Geopolitical Risks

Gold surged toward $3,370 per ounce on Wednesday, clawing back some losses from the previous day, as escalating geopolitical and economic uncertainties enhanced its status as a safe-haven asset. On Tuesday, the OECD revised down its global growth forecast, highlighting increased pressure on the US economy due to intensifying trade tensions. This sentiment was further exacerbated by disappointing US factory order figures, although partially offset by indicators of labor market strength. Simultaneously, President Trump's tariffs on steel and aluminum came into effect, adding further strain to international trade dynamics. Tensions between Washington and Beijing persisted, with both parties accusing each other of breaching the trade agreement. Market participants are now focused on the anticipated meeting between President Trump and President Xi later this week. In terms of geopolitical developments, hostilities between Ukraine and Russia continued despite ongoing peace negotiations, while an Iranian diplomat suggested that Tehran is likely to dismiss a US-led proposal to resolve the nuclear impasse.