Silver surged above $32 per ounce on Wednesday, hitting a three-month high as global trade and economic uncertainties fueled safe-haven demand for precious metals. The metal also benefited from a sharp pullback in the dollar. Earlier this week, the US delayed its planned 25% tariffs on Mexico and Canada for one month but proceeded with the imposition of 10% tariffs on China. Beijing retaliated with its own tariffs on select US exports and targeted several US firms for potential sanctions. On the supply side, the Silver Institute recently forecasted a fifth consecutive year of significant...
The dollar fell versus all Group-of-10 peers as tariff risks remain in the background, while the yen led gains following data pointing to more interest rate increases by the Bank of Japan. The Bloomberg Dollar Spot Index drops 0.3% to its lowest since Jan. 27; the yield on 10-year Treasuries slips 3bps to 4.48%. The move reflects unwinds of longs built on tariff risks and meets spillover of yen strength. USD/JPY drops 1.1% to 152.65, its lowest since Dec. 13; one-week risk reversals are little changed at 140bps, puts over calls Japan nominal wages rose 4.8% in December from a year...
Gold's price (XAU/USD) has no limit and rallies for a fifth consecutive day in a row on Wednesday, accounting for more than 2% of gains this week and hitting fresh all-time highs near $2,870. Softer economic data from the United States (US), which further supports the case for another rate cut from the Federal Reserve (Fed), together with quickly fading tariff fears, is lifting Gold to higher levels day by day. On the economic data front, the calendar could become an additional tailwind for Gold to stretch even higher. This Wednesday, US Purchasing Managers Index (PMI) data for January will...