The price of gold fell but remains near historical highs, weakened by the US dollar and ETF inflows to support safe-haven demand

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Golden Ten Data reported on February 25 that although the price of gold futures is now falling, it still maintains a near historical high level supported by the weakening of the US dollar, the surge in ETF fund inflows and the rise of risk aversion. SP Angel analysts noted in the report that gold prices have shown resilience amid the sell-off in global equities. The agency’s data showed that the inflow of funds into gold ETFs accelerated, and the scale of single-day net inflows on Friday hit a new high since November 2017. According to the analysis, as the market digests the impact of Trump’s economic policies, the U.S. dollar index fell slightly to push up the demand for gold allocation. SP Angel added that expectations that Trump’s tariffs could drag down the U.S. economy are creating a market consensus, pushing Treasury yields lower and weighing on the dollar.

TRUMP-1.66%
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