Gold price continues its steady intraday rise amid trade war concerns and a weakening USD.

Gold Price Rises for Second Day Amid Trade War Fears and Weaker USD

Gold price (XAU/USD) extends its upward momentum for the second consecutive day on Thursday, building on Wednesday’s rebound from the $2,864 level. The precious metal climbs to the $2,920 region during the Asian session, driven by multiple factors influencing market sentiment.

Growing concerns over a potential global trade war—sparked by US President Donald Trump’s new tariffs on commodity imports and retaliatory measures—continue to boost demand for gold as a safe-haven asset. Additionally, renewed selling pressure on the US Dollar (USD) provides further support to bullion, fueling its steady rise.

However, persistent inflationary pressures in the US suggest that the Federal Reserve (Fed) may maintain its hawkish stance and keep interest rates elevated for an extended period. This outlook led to a spike in US Treasury bond yields overnight, which could limit deeper USD losses and cap gold’s upside amid overbought conditions.

With geopolitical uncertainty and inflation concerns shaping market movements, gold remains a key asset to watch in the near term.