Gold climbs on safe-haven bids as Trump imposes fresh tariffs
Spot gold gained 1% to $3,356.93 per ounce by 2:43 p.m. EDT (1843 GMT), after touching its highest level since June 24 earlier in the session. US gold futures closed up 1.4% at $3,371.20.
Global stocks fell after Trump ramped up his tariff assault on Canada, saying the US would impose a 35% tariff on imports next month and planned to impose blanket tariffs of 15% or 20% on most other trading partners.
Trump this week also announced a 50% tariff on US copper imports and the same levy on goods from Brazil. 'We are in an environment where the uncertainty premium is back in the market and gold is getting a safe-haven bid,' said Aakash Doshi, global head of gold strategy at State Street Global Advisors.
'I think the range in the third quarter is most likely between $3,100 and $3,500. It's been a very strong first half of the year, and I believe we're now in a bit more of a consolidation phase.' Non-yielding gold tends to perform well during economic uncertainty and in a low interest rate environment.
Federal Reserve Governor Christopher Waller on Thursday reaffirmed the possibility of a rate cut this month, with investors pricing in 50 basis points of cuts by year-end.
Elsewhere, spot silver rose 3.9% to $38.46 per ounce, its highest level since September 2011. The premium of the US futures for silver, platinum and palladium against the London benchmarks rose after Trump's copper tariff announcement this week, leading to a spike in lease rates.
'Traders unwound open positions on NYMEX/COMEX and had to borrow on the other side,' said a precious metals trader, adding that this activity in the so-called white metals did not affect gold. Platinum gained 2.8% to $1,399.13 and palladium climbed 6.5% to $1,216.12. The rally in palladium is likely driven by speculation that Trump's upcoming 'major' statement on Russia, expected on Monday, could involve sanctions that impact the metal, said Tai Wong, an independent metals trader.
'Fundamentally palladium isn't great but if Russian supplies are interrupted this could run for a bit.'
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