Gold prices surged to a record high as investors sought safer assets amid rising trade tensions between the US, Canada, Mexico, China, and the European Union. The move follows US President Donald Trump’s imposition of tariffs on these countries, which have sparked concerns about the impact on the global economy and monetary policy.
Bullion advanced by 1.2% to $2,830.74 an ounce, surpassing its previous record, before paring gains after Trump agreed to delay tariffs against Mexico for a month. Despite this, investors remain cautious, parking their money in havens like gold and the Japanese yen.
Experts say that the uncertainty and risk associated with the trade tensions are helping gold prices rise. “We could envision a situation where inflation migrates higher, while the economy slows down,” said Bart Melek, global head of commodity strategy at TD Securities. The US has announced tariffs on goods from Canada, Mexico, and China, which are set to take effect on Tuesday.
The move has led to a surge in lease rates for gold and silver, with traders rushing large volumes of the metals into the US before any tariffs are imposed. Gold prices rose 0.7% to $2,816.75 an ounce as of 12:14 p.m. in New York, while silver gained and platinum and palladium fell.
Source: https://finance.yahoo.com/news/gold-edges-higher-trump-tariffs-230815570.html