PT Rifan Financindo Berjangka – Gold Holds Near 11-Week High as Trump Hints at China Tariffs
Gold held near the highest since early November, with traders monitoring the outlook for the global economy as President Donald Trump continued to sketch out his views on trade and immigration policies.
Bullion was steady around $2,745 an ounce after surging 1.4% in the previous session, as Trump’s tariff threats bolstered demand for haven assets. He later said that he is considering placing a 10% levy on Chinese goods in retaliation for the flow of fentanyl from the country, and reiterated he intends to hit Canada and Mexico with import duties as high as 25% in coming weeks.
Investors are focused on the implications of the Trump administration’s tariff and tax cut policies, which would likely erode the nation’s finances and reignite inflation. That may limit the Federal Reserve’s ability to keep easing monetary policy. Higher borrowing costs typically pose a headwind for bullion, as it does not pay interest.
Gold set a series of records in 2024, with gains driven by the Fed’s pivot to looser monetary policy, geopolitical tensions, and central-bank buying. The precious metal may yet receive a further boost from demand for haven assets amid concerns about the new president’s immigration policy, as well as scope for increasingly fraught US relations with other nations.
Spot gold was little changed at $2,744.84 an ounce at 8:37 a.m. in Singapore. The Bloomberg Dollar Spot Index rose 0.1%. Silver and platinum edged up, while palladium was steady.
Source : Bloomberg
Gold hits over 2-month high on Trump policy risks, weak dollar
Gold prices jumped to an over two-month peak on Tuesday, supported by a weaker dollar and as markets flocked to the safe-haven asset amid uncertainty surrounding U.S. President Donald Trump’s potential tariffs.
Spot gold climbed 1.3% to $2,742.48 per ounce by 02:36 p.m. ET (1936 GMT), reaching its highest level since Nov. 6 and nearing the all-time high of $2,790.15 set in October.
U.S. gold futures settled 0.4% higher at $2,759.20.
The dollar index slipped 1.2%, holding close to a two-week low hit in the previous session and making bullion less expensive for holders of other currencies.
“Today’s move has largely been about the threat of U.S. blanket tariffs following Trump’s inauguration. The information with respect to potential tariffs has only come in at a trickle,” said Daniel Ghali, commodity strategist at TD Securities.
The newly elected president has not provided any specific details about the universal tariffs or extra surcharges on key trade partners, a key plank of his election campaign. PT Rifan Financindo Berjangka.
Source: Reuters