PT Solid Gold Berjangka | Gold Rises On Trump Tariff Concerns
GOLD SOLID GOLD BERJANGKA, SG BERJANGKA , SOLID GROUP, PT SGB , SGB
Solid Gold Berjangka | Gold prices rose on Thursday as U.S. President Donald Trump announced plans to impose reciprocal tariffs on countries that tax U.S. imports, raising concerns about global trade.
Spot gold rose 0.4% to $2,915.76 an ounce, resuming its record high of $2,942.70 hit on Tuesday. U.S. gold futures settled 0.6% higher at $2,945.40.
Trump announced a roadmap on Thursday to impose reciprocal tariffs on any country that imposes duties on U.S. imports.
U.S. producer prices rose sharply in January, providing further evidence of rising inflation and reinforcing financial market expectations that the Federal Reserve will delay cutting interest rates until the second half of the year.
“The main factor is political uncertainty and the economic ramifications… PPI is fairly neutral and has little bearing on gold, investors around the world are worried about what Trump’s policies are going to do to the economy overall,” said Jeffrey Christian, managing partner at CPM Group.
Federal Reserve Chairman Jerome Powell, at his second congressional hearing this week, reiterated that the central bank is in no rush to cut interest rates.
Despite expectations of a market selloff due to recent PPI data, Powell’s testimony and Trump’s talk of a possible Russia-Ukraine peace, the market remains positive as a flight to safety and traders buy dips, contradicting these bearish signals, said Bob Haberkorn, senior market strategist at RJO Futures.
Bullion is seen as a hedge against inflation and economic uncertainty, but higher interest rates are denting the appeal of the non-yielding asset.
The dollar index (.DXY), opens new tab , fell 0.5%, making dollar-priced bullion cheaper for foreign buyers.
Gold prices rose across all major currencies, and the dollar’s slight decline today gives it more room to strengthen, Haberkorn said.
The extraordinary rally that has lifted global gold prices to an all-time high has overshadowed wedding season jewelry purchases in India, while dealers in China are offering discounts to lure buyers.
Spot silver fell 0.2% to $32.15 per ounce. Platinum fell 0.1% to $991.25 and palladium rose 1.6% to $989.50.(Newsmaker23)
Source: CNBC