Gold Continues to Climb Higher, Soars Past Three-Month High - Forex News by FX Leaders

Gold Continues to Climb Higher, Soars Past Three-Month High

Posted Wednesday, June 5, 2019 by
Arslan Butt • 1 min read

Reigning uncertainties in global financial markets over trade tensions continue to let GOLD climb higher on Wednesday. At the time of writing, gold is trading at a little above $1,332 and well above the previous high touched back in February.

Even as trade tensions between the US and China continue to weigh on markets, the latest tariff threat on Mexico has also started worrying investors and traders. Recent reports about the possibility of a rate cut by Fed weakened the dollar on Wednesday have also proved to be beneficial for the precious metal, helping it soar higher.

Hints by several Fed officials signalling a possible rate cut or intervention by the US central bank has caused investors to turn to safe haven assets like gold. Lower interest rates bring down the opportunity cost of holding bullion, making gold more attractive for investors.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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