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GOLD: Gold’s Rally Continues as Tariffs for China Considered

GOLD
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  • Gold rallied throughout the the day  to reach new highs for the year.
  • Bullion opened at US2,708.21, rising throughout the trading day to $2,750.99.
  • Gold typically likes either lower rates or a weaker USD and with Trump seemingly pulling back from tariffs on China for now, the USD was weaker against most Asian currencies.
  • Gold also exhibits safe-haven status in times of volatility which no doubt will be in the days and weeks ahead as policies are announced.
  • Trump has indicated that tariffs levelled at Mexico and Canada could come into place as early as February, and that he is considering a ‘universal tariff on all imports into the US’.   
  • The threat of tariffs, proposed increase in spending and trade wars sees investors having concern as to the pathway for inflation and hence interest rates.
  • Whilst the geo-politics will have input into the short run impact for gold, the longer term direction for rates will be the most significant for gold.
  • Some of the largest gold ETFs were up over 3% yesterday in what was one of the biggest moves year to date. 
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. 

  • Gold rallied throughout the the day  to reach new highs for the year.
  • Bullion opened at US2,708.21, rising throughout the trading day to $2,750.99.
  • Gold typically likes either lower rates or a weaker USD and with Trump seemingly pulling back from tariffs on China for now, the USD was weaker against most Asian currencies.
  • Gold also exhibits safe-haven status in times of volatility which no doubt will be in the days and weeks ahead as policies are announced.
  • Trump has indicated that tariffs levelled at Mexico and Canada could come into place as early as February, and that he is considering a ‘universal tariff on all imports into the US’.   
  • The threat of tariffs, proposed increase in spending and trade wars sees investors having concern as to the pathway for inflation and hence interest rates.
  • Whilst the geo-politics will have input into the short run impact for gold, the longer term direction for rates will be the most significant for gold.
  • Some of the largest gold ETFs were up over 3% yesterday in what was one of the biggest moves year to date.