The concern of the US President Donald Trump’s tariff threats, which could lead to a global trade war, has driven investor’s appetite for gold, causing its price to skyrocket, with the trade price above the $2,950 per ounce level on Thursday.
Spot gold climbed to $2,954.69 an ounce, making its tenth record high this year. As for US gold futures, its price gained 1.2% to $2,970.7. Overall, gold has gained 12% this year.
Independent analyst Ross Norman stated that the price at $3,000 may have an effect on the market despite the market being technically overbought. Ross also added the gold price will eventually reach $3,000 and the question is when.
As for Trump’s tariffs, the president stated he would raise the tariffs on lumber, cars, semiconductors and pharmaceuticals next month or sooner. Besides these goods, Trump did impose a 10% tariff on Chinese imports and a 25% tariff on steel and aluminium.
Moreover, IG market strategist Yeap Jun Rong stated that there is a speculation that the peace talk between Ukraine and Russia could lower the gold price, though, temporarily.
Furthermore, the Federal Reserve’s latest policy meeting stated that Trump’s initial policy may increase the inflation rate, causing the central bank to pause its decision to cut the interest rate even further.
As for other materials, spot silver’s price increased 0.9% to $33 an ounce, while platinum increased 0.3% to $974.85. Palladium, however, rose the farthest by 1.4% to $981.70.
