Gold has broken all-time highs — How much to buy now?
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The global financial markets may be witnessing another historic event — the price of gold updated its record and rose to $3,080 an ounce on Friday, March 28th. This sharp increase in value is attributed to the actions of US President Donald Trump, in particular, the escalation of trade tensions.
This was reported by Trading Economics.
What is happening to the price of gold
On March 14th, the price per ounce crossed the psychological threshold of $3,000 for the first time. After that, the dynamics began to decline, but on March 26, Donald Trump announced the introduction of a 25% tariff on cars manufactured outside the United States. His decision will come into effect on April 2nd and marks, in the words of the White House, "the beginning of America's day of liberation".
Obviously, the new tariffs will lead to higher vehicle prices. According to Cox Automotive, cars from Canada and Mexico could cost as much as $6,000 more. Such a price change will lead to a reduction in production of up to 30% in American plants.
In fact, the price of gold jumped in response to the escalation of trade tensions, as the European Union and Canada threatened Trump in response to the tariffs. In addition, the precious metal rose on strong central bank buying and increased demand for ETFs.
Experts noted that investors will continue to closely monitor the data on the US economic activity index, as this information can shed light on the future monetary policy of the Federal Reserve. It is expected that by the end of 2025 interest rates will be reduced several times.
What else you should know
CD Projekt has announced that the release of the long-awaited fourth installment of the computer game The Witcher IV will take place after 2026. As a result, the shares of the Polish developer plummeted.
Also, the Chinese company Xiaomi Corp. plans to sell 750 million shares. This will help the company attract significant investments of up to $5.3 billion, which will be used to expand the production of electric vehicles.
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