Latest news with #BRICs
Bloomberg
02-06-2025
- Business
- Bloomberg
You Might Choke Gorging on the TACO Trade
Save To get John Authers' newsletter delivered directly to your inbox, sign up here. Every so often an idea goes truly viral. A four-letter acronym always helps — think of Fear of Missing Out (FOMO), There Is No Alternative (TINA), or the BRICs (Brazil, Russia, India and China). Now it's TACO — Trump Always Chickens Out — trade.
Yahoo
10-02-2025
- Business
- Yahoo
Best gold ETFs and how to invest in mining companies
Gold seems set to break new records this year, with prices reaching unprecedented levels as investors flock to the save haven asset amid a looming trade war sparked by US president Donald Trump's tariffs. The spot price of gold jumped 1.3%, reaching $2,910.75 per ounce, while gold futures rose 1.5% to $2,931.10 after Trump announced plans to impose a 25% tariff on all steel and aluminium imports into the US, including shipments from Canada and Mexico. The US president confirmed that he would make the formal announcement this Monday, marking another significant escalation in his ongoing trade policy overhaul. As gold prices continue to climb, many experts believe the potential for further gains is high, with the $3,000 per ounce mark increasingly within reach. 'Gold remains in a sweet spot, with little standing in its way,' Westpac Banking Corp 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% tariffs on the BRICs if they diversify away from the dollar, all point to a lift in gold's safe haven appeal.' Read more: Will gold prices rise in 2025 and how can you invest? The yellow metal has now gained 10% so far in 2025, adding to its 26% rise in 2024. Analysts believe that the uncertainty stemming from escalating geopolitical tensions and the potential for US tariffs is making gold even more attractive as a safe haven for investors. Kathleen Brooks, research director at XTB, said: 'Interestingly, Trump announced his latest tariffs late on Sunday, which suggests that he is not too worried about the market reaction. "Typically, Trump has announced tariffs earlier in the weekend, as if he was watching the reaction and to give himself time to back track before stocks or risk assets sold off too sharply. This may suggest that Trump is determined to impose tariffs on these industrial metals. 'These tariffs are targeting specific products, rather than individual countries, which makes it hard for any negotiations to take place. We think that this move could boost the gold price, as it may lead to a further flurry of demand to bring gold on shore to the US, in case Trump imposes tariffs on precious metals. 'The question for investors is whether gold will reach the psychologically significant $3,000 level on the back of ever-growing tariff levies. So far, the gold price is higher by $25 early on Monday.' Goldman Sachs prediction that the precious metal would jump to $3,000 per troy ounce by December 2025 now seems only weeks, if not days, away. Uncertainty related to heightened geopolitical tensions and the potential for tariffs from the US is increasing the attractiveness of gold as a safe haven. 'Geopolitical shocks, including tariffs, typically boost both gold and the dollar,' Goldman Sachs' analysts said. David Morrison, senior market analyst at Trade Nation, said: 'Gold's daily MACD pushed further into overbought territory, suggesting that buyers should exercise some caution. But it's also worth noting that gold's advance so far this year has been remarkably measured. There have been few large daily jumps or dips. Instead, gold has made steady upside progress since the end of December. 'Traders are now picking up on gold's potential as a safe haven and store of value as tariff threats and countermeasures seem the order of the day.' Stocks: Create your watchlist and portfolio Gold falls under the category of alternative investments, named after their nature as alternatives to traditional investment assets such as bonds and equities. These can be anything from art to property, hedge fund investments, gold, and gold funds, and even digital assets. For those looking to invest in gold, there are several options to consider, ranging from direct purchases of physical gold to investment vehicles like exchange-traded funds (ETFs) and exchange-traded commodities (ETCs). ETFs and ETCs offer a convenient way to gain exposure to gold without the hassle of storage or concerns over purity. Gold ETFs hold gold bullion or gold futures, and their value is derived from these underlying assets. These products trade like stocks, providing a liquid and accessible way to invest in gold. The costs of gold ETFs typically include ongoing charges and platform fees. Investors should also keep in mind that the performance of these funds can be affected by currency fluctuations, as most physical gold is priced in US dollars. If you look at gold purely as an investment and do not want to handle things like storage or purity levels, you can choose to invest in an ETF or ETC. These investment products are funds that consist of only one asset — gold. They trade just like a normal stock but get their value from holding "underlying assets" centred on the precious metal, such as physical gold, gold futures, or exposure to companies that mine the metal. The main costs of investing in gold ETFs will be the ongoing charge and any platform fees. You should also pay attention to where the product trades. Most physical gold is priced in US dollars, so if an ETF or ETC operates in sterling, then the USD/GBP (GBP=X) rate will likely play a significant role in its performance. Looking at gold ETFs traded in the USA, the DB Gold Double Long Exchange Traded Notes (DGP) has returned 17% this year. ProShares Ultra (UGL) has delivered 17% and Invesco DB Precious Metals Fund (DBP) has recorded an 8% gain since January. However if you look at its performance over the past 12 months, this figure surges to 35%. If you want to keep things in pounds, some of the top gold ETFs in the UK include the Invesco Physical Gold ETC ( It comes with a 0.12% fee and aims to replicate the spot price movement of gold bullion as closely as possible. However, its performance has wavered, with a year-to-date drop of 12%. There is also the iShares Physical Gold ETC ( for the same fee. This product has the particularly of only accepting gold bullion that meets the Good Delivery standards set by the London Bullion Market Association (LBMA). All assets are classified as responsibly sourced, only allocating gold that was mined after 2022. It has lost 10% year-to-date. Read more: Gold demand hits record levels as central banks buy at 'eye-watering' pace The HANetf Royal Mint Responsibly Sourced Physical Gold (RMAP) provides an ethical option. This fund only holds gold bars approved by the LBMA from refiners that meet strict standards. In addition, the Royal Mint is developing the world's first plant to recover gold from electronic waste, ensuring that the gold used is sustainably sourced and has a low environmental footprint. The RMAP fund, traded on the London Stock Exchange, charges a modest annual fee of 0.25%. It has risen 13% since the beginning of 2025, making it a strong performer in the current market. If you'd prefer a fund, Troy Trojan (0P00002AVE.L) is on Hargreaves Lansdown's (HL.L) top funds to watch in 2025 list. It's up 9% this year. The Troy Trojan fund had 12.6% exposure to gold-related investments as of the end of November, including its top positions in the Invesco Physical Gold (SGLD.L) and iShares Physical Gold (SGLN.L) exchange-traded commodities. However, other major holdings in the fund include consumer goods company Unilever (ULVR.L) and tech giant Alphabet (GOOGL, GOOG). Another route for gaining exposure to gold is through gold mining stocks. These investments provide the opportunity to benefit from the growth and profitability of mining companies while also potentially receiving dividends. You are investing in a company, just like you would do with any other listed business, but in this case, you secure exposure to gold and could potentially achieve higher returns as gold companies expand production and reduce costs, which can drive profits. As you own shares in the company, you could also be in line for dividends. In the US, Galiano Gold (GAU), Equinox Gold (EQX) or ElDorado Gold (EGO) shares have a track record of delivering dividends to investors. Barrick (GOLD) is also a household name for gold investors. Again, if you prefer to keep your investments UK-bound, there is Empire Metals (EEE.L), Serabi Gold (SRB.L) or Resolute Mining (RSG.L). For those seeking more flexibility in their gold investments, the Royal Mint now offers a solution in the form of "digital gold". This option allows investors to purchase a fraction of a gold bar, starting from as little as £25. It provides an easy way to gradually build a gold position, making it an attractive choice for those who wish to invest on a month-by-month basis. The Royal Mint charges a storage fee of 0.5% plus VAT, ensuring that the gold is securely held. As with all investments, it's important to remember that past performance is not an indicator of future results, and gold should be considered as part of a well-diversified portfolio to mitigate risk. Read more: Has DeepSeek impacted the appeal of Mag 7 stocks? The most popular stocks and funds for investors in January Where the UK's ISA millionaires are investingSign in to access your portfolio
Yahoo
10-02-2025
- Business
- Yahoo
Gold passes $2,900 to record as Trump tariffs spur haven buying
(Bloomberg) — Gold (GC=F) rose to a record after US President Donald Trump said he would announce tariffs on steel and aluminum imports Monday, adding to increasing uncertainty in global financial markets. Nice Airport, If You Can Get to It: No Subway, No Highway, No Bridge Sin puente y sin metro: el nuevo aeropuerto de Lima es una debacle The Forgotten French Architect Who Rebuilt Marseille In New Orleans, an Aging Dome Tries to Stay Super How London's Taxi Drivers Navigate the City Without GPS Bullion climbed to $2,903.21 an ounce — after advancing 2.2% last week — as the president's latest trade threats helped boost demand for haven assets. Trump said Sunday that 25% levies will apply to steel and aluminum 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 Corp. 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% 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 Chair Jerome Powell's semiannual testimony to lawmakers Tuesday and Wednesday for clues about the path forward for US monetary policy. 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. Still, the metal's role as a store of value in uncertain times continues to drive investor appetite. Markets are trying to get a read on the potential implications for the US economy and monetary policy if the new administration's policies on trade and immigration reignite inflation and affect growth. China's central bank expanded its gold reserves for a third month in January, signaling ongoing commitment to diversify holdings even with prices at historically high levels. Asia's largest economy also announced a pilot program to allow 10 major insurers to invest as much as 1% of their assets in bullion for the first time. That would translate into a potential 200 billion yuan ($27.4 billion) of funds, Minsheng Securities Co. said in a note. Spot gold rose 1.5% to $2,902.75 an ounce as of 9:54 a.m. in London. The Bloomberg Dollar Spot Index was little changed. Silver, platinum and palladium rose. —With assistance from Jack Ryan. Trump's Tariffs Make Currency Trading Cool Again After Years of Decline The Reason Why This Super Bowl Has So Many Conspiracy Theories Believing in Aliens Derailed This Internet Pioneer's Career. Now He's Facing Prison Orange Juice Makers Are Desperate for a Comeback Business Schools Confront Trump Immigration Policies ©2025 Bloomberg L.P.
Yahoo
10-02-2025
- Business
- Yahoo
Pound, gold and oil prices in focus: commodity and currency check, 10 February
The pound held steady against a stronger dollar, inching just above the flatline at $1.2399, as president Donald Trump's latest tariff threats spurred demand for the traditional safe-haven greenback. Trump announced plans to impose a 25% tariff on all steel and aluminium imports into the US, including shipments from Canada and Mexico. The president confirmed that he would make the formal announcement on Monday, marking another significant escalation in his ongoing trade policy overhaul. Speaking aboard Air Force One while en route from Florida to New Orleans for the Super Bowl, Trump said the new tariffs would be in addition to existing duties on metals. "Any steel coming into the United States is going to have a 25% tariff," Trump told reporters on Sunday. Although tariffs on UK exports to the US remain a possibility, Trump expressed confidence that a deal "can be worked out." Traders are expected to monitor closely any developments around additional tariff measures from the US president. Home Office minister Dame Angela Eagle said the UK will have to 'wait and see' if Trump provides more clarity on his threat to impose tariffs on all steel and aluminium imports to the US. She said: 'We have a very balanced trading relationship with the US – I think £300bn worth of trade between our countries – and I think it's in the best interests of both of us, as longstanding allies and neighbours, that we carry on with that balanced trade.' UBS noted: 'We believe tariff risks are here to stay and could resurface at any time. Trump's focus is likely to turn to Europe next. Even though the UK will not be Trump's main target in a trade war, we see the recent recovery in GBPUSD as overdone and expect a setback in the coming weeks.' Meanwhile, sterling was higher against the euro (GBPEUR=X) on Monday morning, at €1.2024. Gold prices soared to a record high as investors flocked to the precious metal for a safe haven as all-out trade war looms. The spot price of gold jumped 1.2%, reaching $2,895.60 per ounce, while gold futures rose 1.17% to $2,921.40. 'Gold remains in a sweet spot, with little standing in its way,' Westpac Banking Corp. 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% tariffs on the BRICs if they diversify away from the dollar, all point to a lift in gold's safe haven appeal.' The yellow metal has now gained 10% so far in 2025, building on its 26% rise in 2024. Kathleen Brooks, research director at XTB, said: 'Interestingly, Trump announced his latest tariffs late on Sunday, which suggests that he is not too worried about the market reaction. "Typically, Trump has announced tariffs earlier in the weekend, as if he was watching the reaction and to give himself time to back track before stocks or risk assets sold off too sharply. This may suggest that Trump is determined to impose tariffs on these industrial metals. 'These tariffs are targeting specific products, rather than individual countries, which makes it hard for any negotiations to take place. We think that this move could boost the gold price, as it may lead to a further flurry of demand to bring gold on shore to the US, in case Trump imposes tariffs on precious metals. 'The question for investors is whether gold will reach the psychologically significant $3,000 level on the back of ever-growing tariff levies. So far, the gold price is higher by $25 early on Monday.' Oil prices edged higher as fears of escalating trade wars and increased inflationary pressures grew following new tariff threats on steel and aluminium, as well as potential retaliatory tariffs from China. Brent crude futures rose 0.4% to $74.97 per barrel, while US West Texas Intermediate (WTI) crude climbed by the same margin to $71.31 per barrel. The developments have raised concerns about the potential impact on global economic growth and energy demand. Experts warned that President Trump's tariff threats could lead to a full-blown trade war, further exacerbating fears that the US's protectionist policies might increase inflationary pressures domestically. In response, China's retaliatory tariffs against the US took effect today, following failed negotiations between Beijing and Washington. Oil and natural gas traders are pushing for exemptions on US crude oil and liquefied natural gas imports from China. Meanwhile, continued uncertainty surrounding US Federal Reserve policies, along with US sanctions on Iranian oil exports, has added further volatility to the energy markets. In broader market movements, the FTSE 100 (^FTSE) was higher on Monday morning, advancing 0.3% to 8,729 points. For more details, check our live coverage here.
