(Reuters) – Gold prices increased on Thursday, as the tariff threats of US President Donald Trump promoted the possibility of a global trade war to a safe demand for precious metal.
Spot Gold rose 0.1% to 2,936.38 as an ounce as Spot Gold 02:36 PM ET (1936 GMT). It hit the first $ 2,954.69 in the session – its tenth record is high so far this year.
US gold futures settled at 0.7% more $ 2,956.10. So far this year, the bullion has increased by about 12%.
Peter Grant, Vice President and Senior Metals Strategist, Peter Grant said, “Inflation and development concerns continue to stop in ongoing business tensions and are therefore safe in gold.”
Trump said on Wednesday that he would announce tariffs related to lumbar, cars, semiconductors and pharmaceuticals “” Next month or soon. ”
Since assuming office on January 20, Trump has imposed 10% tariff on sugar imports and 25% tariff on steel and aluminum.
“We continue to see the Central Bank buying … throughout the year. It is one of the main underlying factors of support. We are also looking at the gold market with three straight days of ETF,” Philip Strael, the main market strategist said. In blue line futures.
Trump on Wednesday condemned Ukrainian President Volodimare Zelansky as a dictator and told him that he had to proceed quickly to secure peace or risk to lose his country.
A potential peace deal briefly can reduce geo -political stress and weigh on gold for short term, Grant said. “All-time high may be caught for several weeks, but I think the uptrend continues to eventually continue because there are sufficient fundamental factors that remain very helpful.”
The minutes of the final policy meeting of the US Federal Reserve on Wednesday revealed that Trump’s initial policy proposals had expressed concern over rising inflation, causing further rate cuts to carry forward the central bank’s stance.
Gold exports from Switzerland to Switzerland increase year-on-year in January, as the supply to the US is the highest in at least 13 years, shown by Swiss custom data.
Spot Silver added 0.6% in $ 32.92 an ounce. Platinum rose 0.7% to $ 978.05, while the paladium grew by 1% to $ 978.02.
(Reporting by Anmol Choubey in Bangalore; Maju Samuel, Shilpi Majumdar and Allen Barona)
