PT Rifan Financindo Berjangka – Gold Holds Near Highest Since October on Trump Tariff Threats
Gold held near the highest level since October, as traders considered the impact President Donald Trump’s latest tariff threats against China and the European Union could have on the global economy.
Bullion was trading near $2,755 an ounce, about $35 short of its all-time high, after gaining about 2% so far this week. It’s been supported by increasing haven demand as investors weighed the new administration’s trade stance. The president has identified China, the European Union, Canada and Mexico as potential targets for import levies, though there is uncertainty over whether he will follow through.
Traders are also focusing on the wider implications from Trump’s domestic policies, including a pledge to cut taxes and curb immigration. Economists say those moves will likely erode the nation’s finances and reignite inflation, which may ultimately limit the Federal Reserve’s ability to keep easing monetary policy.
The precious metal set a series of records last year, with gains driven by the Fed’s pivot to cutting interest rates, geopolitical tensions and central-bank buying. The precious metal may receive a further boost from demand for safe-haven assets on concerns about the scope for increasingly fraught US relations with other nations.
Spot gold eased 0.1% to $2,754.72 an ounce at 8:29 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver was little changed, while platinum and palladium dipped.
Source : Bloomberg
Trump uncertainties push safe-haven gold to near all-time high
Gold prices soared to near three-month highs on Wednesday, trading just below its record peak, fuelled by a soft dollar and lack of clarity around U.S. President Donald Trump’s policy plans, which investors fear could trigger trade wars and elevate market volatility.
Spot gold added 0.4% to $2,755.2 per ounce as of 02:29 p.m. ET (1629 GMT). Prices were at their highest since Oct. 31 when they hit their all-time high of $2,790.15.
U.S. gold futures settled 0.4% higher at $2,770.90.
The dollar index dipped to a more-than-three-week low earlier in the session, making greenback-priced bullion less expensive for holders of other currencies.
“There are uncertainties with proposed tariffs and other things, and gold typically does well when there’s a large or even a moderate amount of uncertainty in the market, it’s a natural place where people gravitate to,” said Ryan McIntyre, senior portfolio manager at Sprott Asset Management.
Trump said his administration was discussing imposing a 10% tariff on goods imported from China on Feb. 1, the same day that he previously said Mexico and Canada could face levies of around 25%.
Gold is often viewed as a haven during times of economic and geopolitical turmoil, but Trump’s proposed policies are broadly regarded as inflationary, potentially compelling the U.S. Federal Reserve to sustain elevated interest rates for an extended period to rein in rising price pressures.
Spot silver was steady at $30.86, but hovered near a one-month high it hit on Jan. 16. PT Rifan Financindo Berjangka.
Source: Reuters