Gold hits 2970, setting a new high! Can't hold it back?

US President Trump's trade policy continues to boost market risk aversion demand, and the cumulative increase in gold prices this year has exceeded 13%. US Commerce Secretary Howard Lutnick recently claimed that "even a recession is worth it" to achieve Trump's economic policies. The latest data shows that the US PPI unexpectedly remained flat in February, and the CPI rose by 0.2% month-on-month (previous value 0.5%). Although the number of initial jobless claims has declined, the government's drastic spending cuts and the escalation of the trade war are threatening the stability of the job market.

Alex Ebkarian, chief operating officer of Allegiance Gold, said: "Gold is in a long-term bull market. We expect gold prices to trade between $3,000 and $3,200 this year." Ebkarian pointed out: "The Federal Reserve may be forced to cut interest rates. The downward interest rate will reduce the opportunity cost of holding gold, which is good for gold prices." The market generally expects the Federal Reserve to maintain the benchmark interest rate in the range of 4.25%-4.50% next week. The bank has cut interest rates by 100 basis points since September last year. Interest rate futures show that traders are betting that the rate cut cycle will be restarted in June.

Silver rose 0.83% to $33.41 per ounce during the same period. New York silver futures rose more than 1% during the day and are now at $34.09 per ounce.

Lukman Otunuga, senior research analyst at FXTM, said: "If silver effectively breaks through $33.30, it may open a channel to $34."

As global trade tensions continue to ferment, precious metals are regaining market favor as traditional safe-haven assets. #黄金白银比特币