Gold Prices Rise to Record High as Trump Tariffs Help Safe-Haven Bid
Gold prices rose to a record high after President Donald Trump said he would announce tariffs on steel and aluminum imports on Monday, adding to uncertainty in global financial markets.
Bullion prices were trading near $2,869 an ounce — after rising 2.2% last week — as the president’s latest trade threats helped boost demand for the safe-haven asset. Trump said Sunday that the 25% levies would apply to steel and aluminum from all countries, but did not specify when they would take effect.
Traders will also be focusing on Federal Reserve Chairman Jerome Powell’s semi-annual testimony to lawmakers on Tuesday and Wednesday for clues on the path forward for U.S. monetary policy. Powell is likely to highlight a resilient economy as a key reason the central bank is in no rush to cut borrowing costs further — a scenario that would theoretically be bad for bullion since it doesn’t pay interest. Still, the metal’s role as a store of value in uncertain times continues to drive investor interest, with markets trying to understand the potential implications for the U.S. economy and monetary policy if the new administration’s trade and immigration policies rekindle inflation and crimp growth.
China’s central bank expanded its gold reserves for a third month in January, signaling a continued commitment to diversifying reserves even with prices at historic highs.
Spot gold rose 0.3% to $2,869.09 an ounce as of 8:09 a.m. in Singapore, after hitting an all-time high of $2,886.79 on Friday. The Bloomberg Dollar Spot Index rose 0.2%. Silver was steady, while platinum and palladium fell.
Source: Bloomberg
