Gold holds steady as US inflation hits 3-year high
Gold is holding steady at about $3,340 per ounce after dropping 1.8% last week.
The big reason? US inflation just hit a three-year high, with President Trump's tariff moves adding to the pressure.
This has traders rethinking whether the Federal Reserve might cut interest rates soon.
Gold's value and geopolitical tensions
Higher borrowing costs, often a result of central bank responses to inflation, mean borrowing money costs more, which usually makes gold less attractive since it doesn't pay interest.
Atlanta Fed President Raphael Bostic pointed out that businesses are feeling squeezed by these higher costs and tariffs.
Still, people are watching Trump's talks with Ukraine's president and his prior discussion with Russia's president—any geopolitical drama could push gold demand up again.
Gold's performance this year
Even with this recent dip, gold is up over 25% for the year and staying close to its April peak of $3,500.
With global tensions and economic uncertainty sticking around, gold continues to be a go-to safe haven for investors looking for some stability.