Online Reporter
Gold climbed to a record as markets weighed the latest US trade news from President Donald Trump, who has driven a flight to safety assets amid mounting confusion over his tariff agenda.
Bullion edged higher yesterday to a new all-time high above $3 245 an ounce, beating the previous record posted Friday. It gained more than 6 percent last week, supported by an ongoing declines in the dollar.
Markets looked past an apparent tariff reprieve on popular consumer electronics, after Trump on Sunday signaled separate duties were being planned on those products. A weaker greenback makes gold cheaper for foreign investors, as it is priced in the currency.
The precious metal is up more than 20 percent so far this year as investors have rushed to safety, with Trump’s fast-evolving trade policy leading to large convulsions in US stocks, bonds and the dollar amid fears of a worldwide recession. In particular, a selloff in US government bonds is highlighting eroding appetite for American assets — prompting questions about whether the nation’s debt remains a haven in times of turmoil.
“Gold seems to be the clear beneficiary of the debates raging around the US dollar, and we’ve witnessed the gold price in absolute beast mode,” Chris Weston, head of research at Pepperstone Group, said in yesterday note. The view among some traders is that “gold is simply too hot to short, but also too overbought to chase,” he said.
Elsewhere this week, traders will be focused on how some of the world’s biggest central banks approach the rapidly shifting global outlook, with Singapore and the European Central Bank expected to ease monetary policy. Lower rates are typically positive for non-interest bearing bullion. — Bloomberg
