Gold may soar if Fed is forced to cut interest rates — Heraeus

Gold prices are on the rise amid continued uncertainty over Donald Trump's trade tariffs. Experts at Heraeus predict that the precious metal could find further support if the Federal Reserve decides to ease its monetary stance. Silver prices, on the other hand, are experiencing weaker growth, with forecasts suggesting that the white metal may fall even more, especially if the US reduces imports of solar panels.

The American government has currently delayed enacting trade tariffs against key partners for 90 days, which has led to a sharp rally in gold, as sources claim.

The US Consumer Price Index (CPI) dropped to 2.4% in March. Heraeus warns that Trump's duties could reignite inflationary pressures. The broader economic impact of these tariffs may be more significant than previously anticipated, putting the Federal Reserve in a challenging position as it seeks to tame consumer price growth while also promoting a healthy GDP rise. Traditionally, when the economy shows signs of weakening, the US central bank responds by lowering interest rates, experts noted.