|

Gold rises, tariffs hit auto industry

ByVictoria

Trump announced 25% tariffs on all vehicles and foreign-made auto parts imported into the United States late on Wednesday, prompting heavy losses in Japanese and South Korean stocks in Asian trading overnight.

General Motors slumped 6%, while shares in Ford fell almost 5%, reflecting concerns about the impact on their supply chains.

“Uncertainty on the tariff front remains high, which is really tough for both businesses but also investors to plan into the future, and of course it’s making it really difficult for investors to price risk,” said Baylee Wakefield, a multi-asset portfolio manager at Aviva Investors.

Gold prices rose, up 0.7% on the day at $3,040 an ounce. Goldman Sachs raised its gold price forecast on Wednesday, citing stronger-than-expected ETF inflows and sustained central bank demand.

Source – Reuters

Similar Posts

  • /

    Goldman Sachs Group Inc raised gold to $3,100

    ByVictoria
    0 Comments

    Should uncertainty over economic policy persist, including on tariffs, bullion could hit $3,300 an ounce on higher speculative positioning

    Rising fears of inflation and fiscal risks “may push central banks — especially those holding large US Treasury reserves — to buy more gold

    Source – Bloomberg

  • /

    Chile in a “wait and see” mode

    ByVictoria
    0 Comments

    Chile’s place at the low-end of U.S. tariffs announced last week could be favorable for the world’s leading copper-producing country if U.S. President Donald Trump decides to slap tariffs on copper, Chile Mining Minister Aurora Williams said on Wednesday.

    Chile is in “wait-and-see” mode until the investigation concludes, Williams told Reuters, but sees potential for a positive outcome even if the U.S. imposes tariffs on copper.

    “If we assume that Chile is within the lowest tariff range, the application of a potential 10% tariff is lower than the tariffs we have seen for other copper-producing countries and therefore also generates a better price position,” Williams said

    Source – Reuters

  • /

    Goldman Sachs raises gold forecast again

    ByVictoria
    0 Comments

    Analysts led by Lina Thomas moved their gold forecast for the end of 2025 to $3,300 an ounce, from $3,100.

    Gold futures rose 1.3% to $3,060.70 an ounce, buoyed by uncertainty over new auto tariffs announced by the White House on Wednesday. 

    On Tuesday, Bank of America lifted its gold-price forecast to $3,500 from $3,000. As with Goldman, their analysts cited central bank and ETF demand, but also pointed out that China’s insurance industry is getting a regulatory push to buy more.

    Source – Market Watch

  • /

    Gold boosts South African rand

    ByVictoria
    0 Comments

    South Africa’s commodity-backed currency edged up on Monday, helped by higher gold prices, as investors digested last week’s unexpectedly weak U.S. jobs data and awaited tariff updates ahead of the United States’ August 8 deadline.

    The bourse was boosted by South African miners, including Gold Fields , up 8%, AngloGold Ashanti (AU.N), at 6%, and Harmony Gold , which rose 7%.

    “Our foremost priority is protecting our export industries. We will continue to engage the U.S. in an attempt to preserve market access for our products,” President Cyril Ramaphosa said in a newsletter on Monday

    Source – Reuters