Gold prices stabilize after Trump tariffs.
The gold price took a break on Thursday, after it surged to another record high. This was after U.S. president Donald Trump announced sweeping import duties that drove investors into the safe-haven investment.
Gold spot was unchanged at $3,130.21 by 0834 GMT, amid profit-taking. It had earlier reached a session high of $3,167.57.
U.S. Gold Futures fell 0.4% to $3.154.10.
The metal has maintained its rally from last year, with gold prices increasing 19% by 2025. This is due to a number of factors, including geopolitical and economic uncertainties, central bank purchases, and an increase in flows into exchange-traded fund (ETF) that are backed by gold.
Ross Norman, an analyst, said that the tension caused by tariffs is causing a flight to quality and resulting in a rise in gold prices.
Gold is clearly on the move. It is hard to pick a top when gold is at an all-time record high. The fact that dips are aggressively bought confirms the strength of sentiment.
Trump announced on Wednesday that he would impose a 10% duty on the majority of goods imported into the U.S. as well as higher tariffs on dozens rivals and allied countries. Global markets have been thrown into turmoil by the far-reaching tariffs, amid fears that they may dampen economic development and fuel inflation.
Analysts at ANZ predicted that central bank purchases and strategic funds flowing into gold would drive prices up to $3,200 in the next six-months.
A White House factsheet showed that Trump's tariffs did not apply to certain products, such as copper, gold and energy, or "certain minerals" which are not available within the United States. Stocks of gold in COMEX U.S. warehouses have increased in recent months due to fears that import tariffs could curb shipments.
Silver spot fell 2.7%, to $33.12, a new low. Palladium fell 1% and platinum dropped 1.5%, to $969.25.
(source: Reuters)
