Gold hits new high, Trump tariffs and Fed minutes cause market turmoil

Jinshi data news on February 20th, during the early European trading session on Thursday, the price of gold hit another historical high and confirmed a breakout from the short-term trading range. The latest threat from US President Trump to impose tariffs on imported goods has dampened investors' preference for risk assets and continues to support the demand for safe-haven asset gold. The global chase for safe assets has led to a decline in US Treasury yields, which in turn has exerted some downward pressure on the US dollar, further favorable information for the price of gold. At the same time, the hawkish tone of the Fed meeting minutes released on Wednesday reaffirmed the market's expectation that the Fed will extend its pause on interest rate hikes. This could serve as a catalyst for pushing up US Treasury yields and the US dollar, potentially limiting the upside space for gold prices that do not generate income. However, the slightly overbought condition shown on the daily chart may further hinder traders from establishing new bullish positions on spot gold/US dollar. Nonetheless, the fundamental backdrop still supports the prospect of further pumping up the price of gold.