The US tariff policy has boosted safe haven demand, and the US dollar rose on Thursday Gold prices hit a new low in over two weeks, with attention paid to US PCE data

28 Feb, 2025

Under US President Trump's claim to impose tariffs on Canada and Mexico starting next week

Under US President Trump's claim to impose tariffs on Canada and Mexico starting next week, the US dollar index suddenly surged on Thursday and returned above the 107 mark, ultimately closing up 0.74%, the largest daily increase in two months, at 107.28. The yield of US Treasury bonds continues to decline, with the benchmark 10-year yield continuing to decline, reaching 4.294%; The two-year US Treasury yield, which is more sensitive to monetary policy, closed at 4.109%. Gold prices fell 1.3% on Thursday, hitting a two-week low of $2867.86 per ounce during trading and closing at $2876.95 per ounce. On the one hand, the US durable goods orders data was stronger than market expectations, further cooling down expectations of a Federal Reserve interest rate cut, and the US dollar surged to a new high in a week, suppressing gold prices; On the other hand, as the Russia Ukraine war draws to a close, geopolitical concerns have cooled down, suppressing safe haven demand for gold, despite lingering concerns about the international trade situation. Due to Trump revoking the operating license of American oil giant Chevron in Venezuela, supply concerns have resurfaced. The two oils have rebounded. WTI crude oil briefly returned above $70, but failed to stay above this level, ultimately closing up 1.83% at $69.94 per barrel; Brent crude oil closed up 1.44% at $73.29 per barrel.

 

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