Gold is on a tear, hitting a record high in New York on Monday at almost $3,150 an ounce to bring the rise this year to 19%.
Analysts at Bank of America think gold could hit $3,500 an ounce if demand increases by 10%.
“Uncertainty around Trump Administration trade policies could continue to push the dollar lower, further supporting gold prices near-term. In our view, a broad rebalancing of America’s twin deficits could be bullish gold too.”
Source – Markets Insider
Source – KITCO
Non-tariff barriers are meant to limit the amount of imports/exports and protect domestic industries. In some relief to consumers globally, the Trump administration has kept some essential items exempt from the purview of these tariffs.
Items exempt from the tariffs levied by Trump include copper, pharmaceuticals, semiconductors, lumber articles, certain critical minerals, as well as energy and energy products.
Source – GoldSilver Reports
Long list of all exempt items when you go to the website. Hope that helps! – V.
Spot gold was up 1.3% at $3,122.02 an ounce at 1129 GMT, after its biggest daily gain since October 2023 on Wednesday. U.S. gold futures were up 1.9% at $3,137.80.
“We’re just living in a world of extreme uncertainty. We just don’t really know which way this trade war is going to go … I think for the course of this year, gold will march higher,” said Nitesh Shah, commodities strategist at WisdomTree.
Spot silver fell 0.6% to $30.85 an ounce, platinum lost 0.4% to $933.55, and palladium was down 1.7% at $915.68.
Source – Reuters
Sales of gold coins and minted bars rose to 25,103 ounces in February, up 35% from January. On a year-on-year basis, they were down 47%.
Silver product sales increased to 482,451 ounces in February.
“It is heartening to see the increase in sales on January levels given precious metals prices remain at record highs,” said Neil Vance, Perth Mint’s general manager of minted products.
Source – Reuters
Although the high gold-silver ratio might suggest that silver has been a laggard, that is far from the case. Silver has rallied 43% in the past year, and gold has been just a bit better with a 44% gain. This year, using popular exchange traded funds as a gauge, iShares Silver Trust (SLV) is up 10% and SPDR Gold Shares (GLD) is up 11%.
Source – Barron’s
While U.S. tariffs and other factors have added fire to already hot demand for gold as an investment, the impact is different for gold jewellery, according to Andrew Naylor
“In markets like Dubai, this creates a two-fold effect: on one hand, you see stronger interest in gold as a safe-haven asset, on the other, high prices dampen jewellery demand.”
“There are no potential customers nowadays because of the gold prices,” said Fahad Khan, a sales representative at retailer Damas Jewellery.
“Higher gold prices are likely to dampen demand for jewellery, in a classic example of how the best cure for high prices is high prices,” said Russ Mould, investment director at AJ Bell.
Source – Reuters