Gold Hits Record as Trump Tariff Agenda Sparks Safer-Asset Buying
Gold rose to a record as markets digested the latest U.S. trade news from President Donald Trump, who has turned to safer assets amid growing confusion over his tariff agenda.
Bullion edged higher on Monday to an all-time high above $3,245 an ounce, beating a previous record set on Friday. Bullion gained more than 6% last week, supported by the dollar’s continued decline.
Markets shrugged off an apparent suspension of tariffs on popular consumer electronics, after Trump on Sunday hinted separate duties were planned on those products. A weaker U.S. dollar makes gold cheaper for foreign investors, as its price is pegged to the currency.
The precious metal is up more than 20% so far this year as investors have scrambled for safe havens, with Trump’s rapidly evolving trade policies causing major turmoil in stocks, bonds and the U.S. dollar amid fears of a global recession. In particular, the selloff in U.S. Treasury bonds highlights the waning appetite for American assets — raising questions about whether sovereign debt remains a safe haven in times of turmoil.
“Gold appears to be the clear beneficiary of the ongoing debate around the U.S. dollar, and we have seen gold prices in absolute beast mode,” Chris Weston, head of research at Pepperstone Group Ltd., said in a note Monday. The view among some traders is that “gold is too hot to sell, but also too overbought to chase,” he said.
Elsewhere this week, traders will be focused on how some of the world’s largest central banks are responding to the rapidly changing global outlook, with Singapore and the European Central Bank widely expected to ease monetary policy. Lower interest rates are usually positive for non-yielding bullion.
Spot gold was little changed at $3,236.27 an ounce as of 10:42 a.m. in Singapore. The Bloomberg Dollar Spot Index fell 0.2%, hitting its lowest since October. Silver fell, while platinum and palladium rose.
Source: Bloomberg
