PT Rifan Financindo – Gold Rises to Another Record High as Trump Boosts Demand for Precious Assets
Gold hit a record high after President Donald Trump imposed 25% tariffs on all U.S. steel and aluminum imports, adding to uncertainty across global markets that has boosted demand for precious assets.
Bullion hit an all-time peak above $2,921 an ounce — after jumping 1.7% in the previous session. Trump said Monday that the levies, which take effect March 4, will help boost domestic production and bring more jobs to the U.S., and warned that tariffs “may go higher.” The precious metal has surged 11% this year, hitting a series of records, as Trump’s disruptive moves on trade and geopolitics have reinforced his role as a store of value in uncertain times. Markets are also trying to get a sense of the potential implications for the U.S. economy and monetary policy if White House policies reignite inflation and dampen growth.
Investors will focus on Federal Reserve Chairman Jerome Powell’s testimony before Congress on Tuesday and Wednesday for clues on the trajectory of monetary policy. Short-term inflation expectations have risen above longer-term ones to the widest gap since 2023, with the so-called five-year breakeven rate hitting 2.64% on Monday. That may bolster the case for a slower pace of easing, a scenario that, in theory, would be bearish for bullion because it doesn’t pay interest.
Elsewhere, China’s central bank expanded its gold reserves for a third month in January, signaling a continued commitment to diversifying holdings even with prices at historic highs. Asia’s largest economy also announced a pilot program to allow 10 major insurers to invest as much as 1% of their assets in bullion for the first time. That would raise a potential fund of 200 billion yuan ($27.4 billion), Minsheng Securities Co. said in a note.
Spot gold rose 0.4% to $2,919.23 an ounce as of 7:50 a.m. in Singapore. The Bloomberg Dollar Spot Index rose 0.1% after rising 0.2% on Monday. Silver and platinum prices edged up, while palladium fell.
Source: Bloomberg
Gold Soars Beyond $2,900 as Trump Threatens Fresh Tariffs
Gold prices continued their record rally on Monday and broke through the key $2,900 level for the first time, driven by safe-haven demand as U.S. President Donald Trump’s new tariff threats amplified trade war and inflation concerns.
Spot gold surged 1.6% to $2,905.24 per ounce, as of 01:45 p.m. ET (1845 GMT), after hitting a record high of $2,911.30 earlier in the session. U.S. gold futures settled 1.6% higher at $2,934.40.
“Obviously the tariff war is behind the rise; it just reflects more uncertainty and more tension in the global trade situation,” said Marex analyst Edward Meir.
Trump announced plans on Sunday to impose an additional 25% tariff on all steel and aluminium imports. He also said he would announce reciprocal tariffs this week, matching rates imposed by other countries and applying them immediately.
Tariffs may exacerbate U.S. inflation, with investors awaiting U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data due later in the week.
If the CPI and PPI data surprise on the downside, it may weigh on the dollar and inflate gold prices, while an upside surprise could push up U.S. yields and strain gold, albeit mildly due to the market’s resilience and buyer interest during dips, Meir said.
Federal Reserve Chair Jerome Powell is also due to testify before Congress on Tuesday and Wednesday.
Bullion has already hit its seventh record high this year, driven by Trump’s tariff threats, which have fueled uncertainty over global growth, trade wars, and high inflation, prompting investors turn to gold as a safe-haven asset.
Phillip Streible, chief market strategist at Blue Line Futures, said gold’s 45-degree rally since December might create a self-fulfilling prophecy of further price increases, potentially leading it to raise its forecast to around $3,250 or $3,500.
Spot silver rose 0.8% to $32.05 per ounce after hitting a three-month high on Friday.
Platinum added 1.5% to $990.74 and palladium gained 2.1% to $985.40. PT Rifan Financindo.
Source : Reuters