Market Analysis by Miro Svoboda, Investment Advisor, Harbourfront Wealth – Sonora Wealth Group
February 11, 2025 –
“Gold prices reached record highs on Monday, amid mounting trade tensions following US President Donald Trump’s announcement of a 25% tariff on all steel and aluminum imports. These measures raise fears of slower global economic growth, leading to heightened market volatility. As a result, traders sought refuge in traditional safe havens like gold and the U.S. dollar. This shift in sentiment is likely to persist, exerting pressure on the Canadian dollar and creating a clouded short-term outlook for the currency.
Investors are also bracing for key economic events this week, further contributing to a risk-averse sentiment. Federal Reserve Chair Powell’s testimony is set to be closely monitored as it could shape market sentiment over the coming weeks. A hawkish tone could temper gold gains, while dovish remarks could further boost gold prices. US inflation figures, scheduled for release later in the week, are also a focal point. The data could provide insights into inflationary pressures.
Meanwhile, de-escalating tensions in the Middle East will also play a crucial role in gold’s short-term outlook. Although easing tensions could curb demand for gold, the uncertainty surrounding Trump’s controversial proposal regarding Gaza might inject renewed volatility into the market.”
Miro Svoboda, Investment Advisor, Harbourfront Wealth – Sonora Wealth Group