Gold prices rose more than 1% on Friday (July 11th) as investors sought safe-haven assets following the announcement of new tariffs by US President Donald Trump, while silver hit its highest level in more than 13 years.
Spot gold prices rose 1% to $3,356.93 an ounce at 2:43 p.m. EDT (18:43 GMT), after hitting their highest level since June 24 earlier in the session. US gold futures closed up 1.4% at $3,371.20. Global stocks weakened after Trump escalated his tariff attack on Canada, saying the US 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 US 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 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 the possibility of an interest rate cut this month, with investors pricing in a 50 basis point reduction by the end of the year. Elsewhere, spot silver rose 3.9% to $38.46 an ounce, its highest level since September 2011.
US futures premiums for silver, platinum, and palladium against the London benchmark rose following 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 the activity in the white metal has not affected gold.
Platinum rose 2.8% to $1,399.13, and palladium rose 6.5% to $1,216.12.
The palladium rally was likely driven by speculation that Trump's upcoming "big" statement on Russia, expected on Monday, could involve sanctions impacting the metal, said Tai Wong, an independent metals trader. (alg)
Source: Reuters
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