PT Rifan Financindo Berjangka – Gold Steady Near Record High as Economic, Geopolitical Risks Ease
Gold was steady in early Asian trade after hitting a series of record highs in the previous session as rising economic and geopolitical risks supported demand for the safe-haven asset.
Bullion held above $2,865 an ounce after rising 0.9% on Wednesday after President Donald Trump said the U.S. could take over Gaza, a comment his aides sought to play down, and that he wanted to start working on a new nuclear deal with Iran. Washington is also expected to present a plan to end Russia’s war in Ukraine next week.
Concerns about the impact of the U.S.-China trade war, as well as the possibility that Trump will impose tariffs on other countries, are also supporting bullion’s role as a store of value in uncertain times. Gold has gained 9% this year, and interest in the precious metal from global central banks shows no sign of slowing, the World Gold Council said.
Driving Demand in 2025 The market is also waiting to see if there will be a ripple effect for the U.S. economy and monetary policy if tariffs reignite inflation. A report on Wednesday showed weaker-than-expected orders for services, suggesting activity could slow in coming months as Americans tighten their belts. Trade war fears have also rattled the precious metals market, with signs of rising demand for gold as primary dealers look to shift metal to the U.S. before any tariffs are imposed.
Spot gold was steady at $2,868.15 an ounce at 8:33 a.m. in Singapore, after hitting an all-time high of $2,882.36 on Wednesday. The Bloomberg Dollar Spot Index was little changed, having fallen 0.9% over the previous two sessions. Silver, platinum and palladium all rose.
Source: Bloomberg
Gold adds to record rally as trade war anxiety lifts demand
Gold prices continued their record run on Wednesday, as investors sought the safe-haven asset amid escalating concerns about a U.S.-China trade war and the potential impact on economic growth.
Spot gold was up 0.8% at $2,865.61 per ounce by 01:59 p.m. ET (1859 GMT), after hitting a record high of $2,882.16 earlier in the session.
U.S. gold futures settled 0.6% higher at $2,893 per ounce.
“Gold continues to be largely influenced by trade uncertainties … the tariffs with China and the retaliation has the market on edge, so safe-haven flows remain the dominant factor,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Earlier this week, China retaliated by imposing tariffs on U.S. goods in response to new U.S. tariffs, escalating the trade war, while U.S. President Donald Trump expressed no urgency in speaking with Chinese President Xi Jinping to alleviate tensions.
Meanwhile, the U.S. Postal Service said it will resume accepting all inbound mail and packages from China and Hong Kong on Wednesday, a day after temporarily suspending such service.
Three U.S. Federal Reserve officials warned Trump’s trade tariffs could drive inflation, with one suggesting uncertainty over price outlooks warrants slower interest rate cuts.
The ADP National Employment report showed the U.S. economy added 183,000 jobs in the private sector last month, compared with economists’ estimate of a rise of 150,000.
“Employment is going to be an important focus this week … but I don’t think that anything is going to materially impact the Fed expectations on the policy, unless it’s really out of line,” Grant said.
Investors are looking to the U.S. payrolls report on Friday for further clues on the outlook for rates. Bullion is considered an inflation hedge, but higher rates could dampen its appeal as the metal yields no interest.
Spot silver rose 0.8% to $32.36 per ounce, platinum gained 1.8% to $980.95 and palladium added 0.3% to $990.75. PT Rifan Financindo Berjangka.
Source: Reuters