Gold rose above $2,800 an ounce in February, holding near a record high amid a wave of monetary policy easing from major central banks as markets assess the impact of the ongoing trade war in North America and China on the global economy. The U.S. imposed 10% tariffs on China and 25% tariffs on Canada and Mexico, with concerns about lower growth weighing on the likelihood of an aggressive Fed reaction that limited the impact on rate-sensitive assets. However, markets are expecting the Fed to deliver two interest rate cuts this year. In turn, the Bank of Canada cut its key interest rate and announced an end to quantitative easing, in addition to a baseline scenario for government debt purchases in the near future. Also on the policy front, both the ECB and the Swedish Riksbank delivered rate cuts, while the central banks of major gold consumers in the PBoC and the RBI have also signaled looser monetary policy and higher liquidity in the near future.

Source: Trading Economics