New York:
Gold prices went up on Thursday, breaking a two-day losing streak. The price of gold jumped by about $50, or 1.5%, and is now around $3,338. This happened because people are worried about trade problems between the US and China, and the US dollar is getting weaker.
What’s going on with trade?
US President Donald Trump said he might not be as strict with the high tariffs on China. But China said they haven’t talked with the US and want all the extra taxes removed first. This back-and-forth is making investors nervous.
Why gold is rising:
- When people are unsure about the economy, they buy gold to feel safe.
- US bond yields (what the government pays on borrowed money) are going down.
- The US dollar is also weaker, which helps gold prices go up.
US economy updates:
More people filed for jobless help last week, just as expected.
Big airplane orders helped increase durable goods sales by 9.2% in March.
What the US Federal Reserve is saying:
Leaders at the Fed said they might lower interest rates in June if the economy weakens. One official said if more people lose jobs, the Fed could cut rates to help.
What’s next for gold prices:
- If gold keeps rising, it might hit $3,400, $3,450, or even $3,500.
- But if it falls below $3,300, it could drop to $3,200 or $3,167.
- If it goes even lower, the next support level is around $3,041.
Quick Fact – What’s a Trade War?
A trade war happens when two countries argue over trade. They put taxes (called tariffs) on each other’s goods, making things more expensive to buy and sell.
