Gold Rises, Trump's 15% Tariffs Shake Markets
Gold prices rose after posting three consecutive weeks of gains, as uncertainty over US trade policy again shook markets and pressured the dollar. Investors tended to shift to defensive assets, making gold a popular commodity amid rising global risk appetite.
Gold bullion briefly strengthened by 1.4% to US$5,180 per ounce. The rise occurred after US President Donald Trump announced 15% global tariffs in response to a Supreme Court ruling rejecting his use of emergency powers to impose duties. A weaker dollar made gold cheaper for non-US buyers, boosting demand.
The court ruling also cast doubt on several trade deals the US has negotiated with key partners. A European Parliament trade official is said to be proposing a delay in ratification of the agreements with Washington until the situation becomes clearer. India has also postponed a trip to the US, while Japanese politicians have called the situation "chaos," adding another layer of uncertainty to the market.
The recent gold rally has helped prices recover from a sharp correction earlier in the month, which dragged them down from record highs. Long-term support for gold is considered strong, ranging from rising geopolitical tensions to investor caution regarding government bonds and major currencies.
However, volatility is expected to remain high in the short term due to the ongoing dynamics of US tariff developments and the unstable situation in Iran. In afternoon trading in Singapore, gold rose around 0.5% to US$5,134.16/ounce, while the Bloomberg Dollar Index fell 0.2%. Silver strengthened 1.4% to US$85.81, while platinum and palladium remained stable. (alg)
Source: Newsmaker.id
