Analysis: The demand for hedging drives the price of gold to rise, but the risk of a stronger dollar still exists

Golden Finance reports that due to hedging demands, the price of gold futures has risen. Tradu's senior financial commentator Nikos Zabouras believes that gold has consolidated its position as a primary hedge asset and become an attractive tool for hedging against inflation. So far this year, the price of gold has risen nearly 10%, thanks largely to President Trump's disruptive operating style, radical rhetoric and potential tariff measures which could hit global trade and supply chains. In the uncertain era of "Trump 2.0", gold naturally benefits from risk aversion and central bank purchases. However, if inflation rebounds, the Federal Reserve will adopt more cautious monetary easing measures which may push up the dollar and suppress demand for gold.