The gold prices hit their highest records to $3689 per ounce ahead of the Federal Reserve rate decision set on Thursday, and recent geopolitical tensions.
The FED is expected to cut the interest rate by 25 bps or 0.25%, the first time since December 2024, due to recent concerns over the labor market conditions. However, President Donald Trump also posted on his social media, citing that he wants a bigger cut, referring to 50bps or more, with a reason of housing market issues and rising national debts.
Geopolitical Tension: Israel still violates Gaza, killing several people and destroying several buildings, while Russia and Ukraine are getting nowhere better. This rising war tension is still a factor in contributing to rising gold prices, as the market sentiment still worries about this issue.
Another factor that people are looking forward to: According to President Donald Trump, the trade deal meeting between the European Union, China, and the US seems to have ended well.
The European Union is reportedly considering imposing sanctions on companies in India and China that are helping Russia with its oil trade. This move would be part of a new round of restrictions. While Trump also mentioned that he will impose major sanctions if the EU does the same.
In fact, US Treasury Secretary Scott Bessent said a framework deal to keep the TikTok app running in the US has been reached, albeit the terms of the blueprint remain unclear. The next meeting between the US and China will be on Friday.
All await India and the United States trade talks on Tuesday, sparking hope for a resolution after recent tensions. The talks come weeks after President Trump imposed tariffs on India for its purchase of Russian oil.
Secure in the talk deal → gold correction will be likely. And vice versa.
Meanwhile, regarding the FED’s Lisa Cook, who President Donald Trump has been trying to dismiss from the FED rate decision, is now being rejected from an appeals court in the US.
