Gold resets record high above $US2900 an ounce Bloomberg
Gold rose to a new all-time high after US President Donald Trump said he would announce tariffs on steel and aluminum imports on Monday (Tuesday AEDT), adding to increasing uncertainty in global financial markets.
Bullion climbed as high as $US2911.72 an ounce — after advancing 2.2 per cent last week — as the president’s latest trade threats helped boost demand for haven assets.
Mr Trump said on Sunday that 25 per cent levies will apply to steel and aluminium from all countries, but he didn’t specify when they would go into effect.
“Gold remains in a sweet spot, with little standing in its way,” Westpac Banking analyst Richard Franulovich said in a note. “An intrinsically unpredictable and disruptive Trump, hurtling tariff threats at allies and adversaries alike, alongside the threats of 100 per cent tariffs on the BRICs if they diversify away from the dollar, all point to a lift in gold’s safe-haven appeal.”
Traders also will focus on Federal Reserve chairman Jerome Powell’s semiannual testimony to lawmakers Tuesday and Wednesday for clues about the path forward for US monetary policy.
Mr Powell is likely to highlight the resilient economy as a key reason central bankers are in no rush to cut borrowing costs further — a scenario that, in theory, would be bearish for bullion since it pays no interest.
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