Gold prices rose towards $2,750 per ounce on Wednesday, extending a more than 1% gain from the previous session, marking the highest level since early November last year. The surge in gold prices was supported by a softer US dollar and growing demand for this safe-haven asset amid persistent trade war concerns. Following President Trump's announcement of potential tariffs, including a pledge to impose tariffs on the European Union and a possible 10% tariff on China, the market remained cautious. Traders were also evaluating inflation risks, as Trump's policies were seen as inflationary, potentially forcing the Federal Reserve to keep interest rates high for a prolonged period. This could reduce gold's appeal, as higher rates increase the opportunity cost of holding non-yielding assets.

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