Gold prices surged more than 1% to their highest level in more than two weeks on Friday (July 11), as investors turned to safe-haven assets after U.S. President Donald Trump escalated the global trade war with the announcement of new tariffs.
Spot gold rose 1.2% to $3,363.46 an ounce at 11:32 a.m. EDT (15:32 GMT), its highest level since June 24. U.S. gold futures rose 1.6% to $3,377.80. Global stocks weakened after Trump escalated his tariff attack on Canada, saying the U.S. would impose a 35% tariff on imports next month and plans to impose across-the-board tariffs of 15% or 20% on most other trading partners.
This week, Trump also announced a 50% tariff on U.S. copper imports and similar levies on goods from Brazil. "We're in an environment where the uncertainty premium is back in the market and gold is getting a safe haven bid," said Aakash Doshi, global head of gold strategy at State Street Global Advisors.
"I think the price range in the third quarter is likely to be between $3,100 and $3,500. The first half of the year was very strong, and I believe we're now in a deeper consolidation phase."
Non-yielding gold tends to perform well during times of economic uncertainty and low interest rate environments.
Federal Reserve Chairman Christopher Waller on Thursday reiterated his belief that the US central bank could cut interest rates at its policy meeting later this month. Investors are currently anticipating a 50 basis point rate cut by the Fed by the end of the year. Elsewhere, spot silver rose 3.4% to $38.30 per ounce, its highest level since September 2011. Platinum rose 0.8% to $1,371.43, and palladium gained 5.4% to $1,203.01.
US futures prices for silver, platinum, and palladium rose in premiums to the London benchmark after Trump's copper tariff announcement this week, which led to a surge in rental rates.
"Traders are unwinding open positions on the NYMEX/COMEX and are forced to borrow on the other side," said a precious metals trader, adding that activity in the so-called white metal has not affected gold. (alg)
Source: Reuters
Gold price trimmed some of its earlier losses on Thursday, yet it remains negative in the day, down over 0.14% as the latest print of consumer inflation was aligned with estimates. Nevertheless, jobs ...
Gold trimmed losses after US inflation and labor market data strengthened bets that the Federal Reserve will cut interest rates next week. Consumer prices excluding food and energy rose 3.1% last mont...
Gold weakened slightly on Thursday (September 11), but held near record highs well above $3,600, as a modest dollar recovery and profit-taking weighed on prices, while investors awaited US consumer in...
Gold held steady just below its record, around $3,645/oz, after an unexpected decline in US producer prices (PPI) fueled hopes of Fed policy easing. The market now awaits the release of US CPI data Th...
Gold price surges on Wednesday, up by over 0.60%, folllowing US inflation data, which increased speculation that the Federal Reserve (Fed) will resume its easing cycle at the upcoming September meetin...
Gold price trimmed some of its earlier losses on Thursday, yet it remains negative in the day, down over 0.14% as the latest print of consumer inflation was aligned with estimates. Nevertheless, jobs data outweighed August's Consumer Price Index...
Oil prices slid about 2% on Thursday on concerns over softening U.S. demand and broad oversupply that offset threats to output from the conflict in the Middle East and the war in Ukraine. Brent crude futures were down $1.11, or 1.6%, to $66.38 a...
United Arab Emirates President Sheikh Mohammed bin Zayed Al Nahyan's tour of Gulf countries is aimed at coordinating positions after Tuesday's Israeli attack on Hamas leaders in Doha, his diplomatic adviser said on Thursday. "The President's Gulf...
The United States (US) Bureau of Labor Statistics (BLS) will publish the 2025 preliminary benchmark revision to the Establishment Survey Data on...
The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday...
Producer inflation in the United States, as measured by the change in the Producer Price Index (PPI), fell to 2.6% annually in August from 3.3% in...
The US Bureau of Labor Statistics reported on Tuesday that the preliminary estimate of the Current Employment Statistics (CES) national benchmark...