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Gold price hits record high on looming US tariff fears

Gold price hits record high on looming US tariff fears Gold price hits record high on looming US tariff fears

Digest opened free editor

Gold reached a record in digital on Thursday, as investors worried about the possible US tariff and as a growing alloy in New York, which created a shortage in London.

The standard price rose to $ 2798 per troop ounce, exceeding its record in October and taking its gains to 7 percent this year, as merchants surrounded a possible transformation in the American trade policy.

US President Donald Trump threatened to impose a 25 percent tariff on all the country’s imports from Canada and Mexico from Saturday, which led to fear in the market that comprehensive definitions could apply to gold, which was historically exempted from import duties.

Traders have a stock of alloys on Comex, the exchange of commodities in New York, as stocks have increased by 75 percent since the American elections. The value of the stock increased to 85 billion dollars on Thursday, and it represents more than 30.4 million ounces, according to Comex data.

The increase in New York has exhausted the easily available gold shares in London, where there is currently a list of four to eight weeks to withdraw it from the Bank of England.

The weak US dollar also helped feed the golden gathering, as it makes alloys cheaper for purchase using other currencies.

This confirms the rise of the market, the short centers of golden futures decreased to its lowest level since April 2020, according to data from the future trading committee of commodities, which is the organizer of the American derivatives.

“There is a lot of concern about the definitions,” said Suki Cooper, an analyst at Standard Charterd. “The gravity of the safe haven from Gold really begins, when there is a widespread risk of assets.”

Gold usually benefits from low interest rates, because alloys are not protected assets, but this link has collapsed in recent months.

Gold’s height came on Thursday, a day after the US Federal Reserve kept the interest rates steadfastly and indicated that President Jay Powell indicated caution of further discounts in prices.

Cooper said that although gold was likely to reach its highest fresh levels in the coming weeks, the gathering may slow down later in the year. She said: “If we see more price cuts in the first half of the year, this would support gold, then this rear wind will calm down in the second half of the year.”

MUFG analysts also told customers that Gold had a “motivation to move forward in the short term”, as the market turned into gold as a geopolitical hedge against the uncertainty in the Trump administration.

They added, “Also, the central banks in the emerging market are still buying alloys.”

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2025-01-30 18:02:00


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