Amid global trade tensions, gold prices held near historic highs in the early trading on February 5th. Currently, spot gold is priced at $2,841.37 per ounce, having briefly risen to $2,845.30 per ounce on Tuesday, marking a new high for four consecutive trading days. Investors are seeking safe-haven assets in the face of heightened global economic uncertainties, and market tensions have been exacerbated by China's tariff measures against U.S. President Trump's policies.
Market strategist Bob Haberkorn from RJOFutures noted that although the dollar has rebounded this week, the Trump administration's imposition of a new 10% tariff on Chinese goods has undoubtedly increased market volatility. He also mentioned that the current tariff news is the focal point for the market, and it is expected to continue dominating market trends in the coming days.
U.S. job vacancies in December fell at the largest rate in 14 months, further weakening the dollar and providing upward momentum for gold. The depreciation of the dollar makes dollar-denominated gold more attractive, thereby supporting gold prices.
Besides the U.S.-China trade conflict, the Trump administration's tariff threats against the European Union have also drawn widespread market attention. Although discussions on imposing tariffs on the EU remain unclear, the uncertainty surrounding tariffs has become a significant risk factor for the global economy. EU leaders have expressed concern over this situation and are preparing for tough negotiations.
In terms of U.S. economic data, the latest job vacancy report from the Labor Department showed a sharp decline in job openings in December compared to the previous month, also supporting the rise in gold prices. While the Federal Reserve is expected to maintain its current policies, market anticipation for future rate cuts continues to grow.
As global trade uncertainties intensify, the upward momentum in gold prices might persist, with market participants closely watching potential developments in the coming days, particularly the direction of the U.S.-China trade dispute.
