Gold rose to a new record high, with spot prices hitting an intraday high of $4,242/oz this morning, driven by escalating US-China tensions and expectations of two more Fed rate cuts this year.
Gold and silver were the two best-performing commodities. Silver prices also rose more than 3% to close above $53/oz yesterday amid tight supplies in London. US Treasury yields fell to their lowest level in months after Fed Chairman Powell hinted at the possibility of a quarter-point interest rate cut this month.
Regarding the latest China tariffs, President Trump issued new trade threats against the country, clearly escalating trade tensions, with Beijing vowing to retaliate against Washington's proposed 100% tariff increase. Furthermore, market participants remained cautious ahead of the outcome of Section 232 investigations into critical minerals including silver, platinum, and palladium amid renewed concerns about potential tariffs, despite their previous exemptions in April.
Gold and silver are the two best-performing commodities this year, with prices up more than 55% and 80% year-to-date, respectively, supported by central bank buying and inflows into ETF holdings.
Demand for safe-haven assets is driven by ongoing US-China trade tensions, threats to the Fed's independence, and the ongoing US government shutdown. (CP)
Source: Newsmaker.id
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