The rise in gold prices continues on Friday afternoon due to concerns about the global economic outlook and the falling dollar. Quotes of June gold futures on the Comex exchange by 12:30 a.m. rise by 2.2% to $3,246.2 per troy ounce. Earlier in the day, an ounce was worth $3,255.9, which is a record high in history.
On the spot market, quotes reached $3,234 per ounce.
The dollar index DXY, which shows the dynamics of the dollar against the six major world currencies, fell by more than 1% to a minimum since the beginning of 2022 due to weakening confidence in US assets in the context of the trade war, Trading Economics notes.
A cheap dollar makes gold more attractive to holders of other currencies.
Earlier this week, the United States eased its position on duties on most countries, giving them 90 days to negotiate to eliminate problems in bilateral trade. At the same time, duties on China were raised to 145%. On Friday, China retaliated by raising tariffs on American goods to 125%.
An escalation of the trade conflict between the world’s two largest economies could lead to a global recession, analysts say. In such circumstances, investors are showing increased interest in safe-haven assets, including gold.
“We believe that gold will continue to rally, and in a favorable scenario, prices could rise to $3,400-3,500 per ounce in the coming months,” said UBS analyst Giovanni Staunovo.
