Gold prices soar to record heights amid Trump’s tariff turmoil
Gold is glittering like never before, with prices reaching record heights as jittery investors scramble for safe havens following United States President Donald Trump’s bombshell tariff threats against Mexico and Canada.
The price of bullion saw a gleaming rise of up to 0.2%, hitting an all-time high of US$2,799.65 per ounce. This shiny achievement came hot on the heels of a 1.3% jump yesterday, January 30, breaking the previous peak set in October.
The surge followed Trump’s high-stakes announcement to slap 25% tariffs on imports from Canada and Mexico come Saturday, with mysterious shadows of further tariff threats looming over China.
This dazzling climb marks gold’s fifth consecutive week of upward movement, driven by a surge in demand for safe assets amidst fears that Trump’s aggressive tariff agenda could ignite trade wars, throwing a spanner in the works of global economic growth.
Meanwhile, there are ongoing concerns that his ambitious tax cut promises and immigration reforms could stretch US finances to breaking point and light the fuse of inflation.
Federal Reserve Chair Jerome Powell weighed in on Wednesday, declaring that the US central bank remains in “wait-and-see” mode, cautiously observing the potential fallout of the new administration’s policies.
True to form, the Federal Open Market Committee (FOMC) kept interest rates unchanged this week, a move widely expected after the steady rate cuts at each of the past three meetings since September. The Committee noted that the slow march towards lower inflation is sparking a cautious approach.
Traders are keeping their eyes peeled for the Federal Reserve’s favourite inflation measure, the personal consumption expenditures index, set to drop later this Friday. Bloomberg’s economist brigade predicts it might reveal a slight uptick in price increases, reported Bangkok Post
As gold continues to dazzle, at 7.22am today, spot gold ticked up by 0.1% to US$2,797.82 an ounce. Over in the currency corner, the Bloomberg Dollar Spot Index also edged up by 0.1%, leaving silver, palladium, and platinum gleaming steadily in their respective arenas.
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