Latest news with #JoniTeves
Wall Street Journal
13-08-2025
- Business
- Wall Street Journal
Gold Edges Higher, Supported by Fed Rate-Cut Prospects
2339 GMT — Gold edges higher in early Asian trade. U.S. data released overnight showed inflation held steady in July, keeping a Fed rate cut in play for September and underpinning the appeal of the non-interest-bearing precious metal. 'Looking beyond the recent volatility brought about by the newsflow on tariffs, the overall positive outlook on gold remains intact,' UBS Global Research's Joni Teves says in an email. 'Looming rate cuts over the course of the year as U.S. economic data softens are supportive of higher gold prices ahead,' the precious metals strategist adds. Spot gold is 0.1% higher at $3,351.09/oz. (
Irish Independent
09-08-2025
- Business
- Irish Independent
Surprise tariff on gold sends shock waves through financial world
Futures in New York, which are backed by bars shipped from Switzerland and other key trading and refining hubs, surged to a record. Traders, analysts and executives across the industry had understood the bars would be exempt from reciprocal tariffs enacted by US president Donald Trump, such as a 39pc levy on Swiss goods. But when a gold refiner in Switzerland asked about it, US Customs and Border Protection (CBP) clarified that one-kilogram and 100-ounce gold bars are subject to the levies, according to a letter from the agency. The decision, if it remains in place, has sweeping implications for the flow of bullion around the world, and potentially for the smooth functioning of the US futures contract. Gold's role as a financial asset and global currency sets it apart from other commodities like copper that have been roiled by tariffs, and traders said that shipments were freezing up in response to the shock news. "In the long run, the existence of US tariffs on deliverable gold products raises the question on the role of futures trading in the US," said Joni Teves, a strategist at UBS. "Until there is clarity, we expect the gold market and precious metals markets more generally to remain very nervous." The US Customs notice was first reported by the Financial Times. The decision extends a tumultuous year for gold, which has soared to unprecedented levels amid strong buying from central banks and as Mr Trump's trade war drives haven demand. Earlier this year, physical flows were upended as traders rushed billions of dollars worth of gold and silver into the US as New York prices traded at large premiums in anticipation of potential tariffs. However, that trade came to a crashing halt after the US included gold and silver in its list of exemptions from the tariffs announced in early April. The industry is still seeking answers to several questions: It's unclear if the US will also impose tariffs on larger 400-ounce bars that underpin trading in London. There's also uncertainty about levies for other major gold-producing countries. Speculation is even swirling that the US government issued the ruling in error, and that it could be legally challenged. The Comex exchange in New York is one of three key global pricing venues, alongside London and Shanghai, where prices are now trading at a big discount. The chaos has been exacerbated by the absence of a formal announcement or explanation. The CBP's ruling, which says that one-kilogram and 100-ounce gold bars should be classified under a different category than the one that received the exemption, was not initially made public but has now appeared on the CBP's website. The decision will have particularly significant implications for refiners in Switzerland, which as the largest gold refining hub plays a particularly crucial role in the smooth functioning of the global market. If prices in London and New York move out of lockstep, Swiss refiners can melt down the larger bars that are traded in the UK capital so they can be delivered against US futures contracts, and vice versa. "Gold is moved back and forth between central banks and reserves around the world," said Robert Gottlieb, a former precious metals trader and managing director at JPMorgan Chase, referring to the bars. "We never, ever thought that it would be hit by a tariff."
Forbes
08-08-2025
- Business
- Forbes
Here's Why Gold Prices Just Hit Another Record High
Topline The value of U.S. gold futures rose to a record high Friday, after the Trump administration tacked on 'surprise' tariffs that some economists warned could disrupt global bullion trade. One analyst said the Trump administration tacking on new tariffs was 'precisely what the market feared.' AFP via Getty Images Key Facts U.S. gold futures, often relied on by investors to hedge positions, rose to an all-time high of just over $3,534 per troy ounce on the New York Mercantile Exchange early Friday. Gold's latest rally follows a Financial Times report on Thursday indicating Customs and Border Protection would hit one-kilo and 100-ounce gold bars with President Donald Trump's tariffs, citing a ruling letter by the agency dated July 31. When Trump announced his 'Liberation Day' tariffs on U.S. trade partners in April, the White House noted that 'bullion' would be exempt from his tariffs and any reciprocal levies, though it's not immediately clear why the trade policy was altered. One-kilo bars are the most common form of gold traded on Comex, the world's largest gold futures market, with a majority coming from Switzerland, the world's largest gold refiner and a major gold exporter to the U.S. that now faces U.S. tariffs of 39%. 'This is precisely what the market feared,' UBS analyst Joni Teves wrote in a note Friday while calling tariffs on gold a 'huge surprise,' suggesting it 'remains to be seen' whether the policy revision would 'eventually be amended.' CBP did not immediately respond to a request for comment. Big Number $61.5 billion. That's the value of gold exported from Switzerland to the U.S. over a 12-month period ending in June, the most of any country, according to federal data. Why Are Gold Prices Surging This Year? Gold prices—up 30% on the year—surpassed the $3,000 threshold for the first time in March, the latest milestone for the metal after crossing $2,000 during the COVID-19 pandemic in 2020 and $1,000 during a financial crisis in 2008. Goldman Sachs commodities strategist Lina Thompson wrote in a February note that gold would ride a 'potentially persistent boost from elevated U.S. policy uncertainty' as Trump and the Federal Reserve clashed over interest rates and as Trump implemented his tariffs. Surprising Fact Wall Street didn't expect gold's value to surge so high this year: Analysts at JPMorgan Chase forecast a $2,950 price target for the end of the year in February, falling lower than end-of-year projections of $3,000 by Citigroup and Goldman Sachs signaling a $3,000 price target by the middle of 2026. Key Background Swiss leadership has criticized Trump's levies on the country, as Swiss President Karin Keller-Sutter argued the tariffs created an 'extraordinarily difficult situation.' Keller-Sutter arrived in Washington, D.C., earlier this week in a bid to lower Trump's tariffs. Before her visit, Trump described his previous conversation with Keller-Sutter: 'The woman was nice, but she didn't want to listen.' He noted Switzerland earns 'a fortune' from pharmaceutical exports and warned of incoming drug tariffs 'within the next week or so.' Further Reading Forbes The Treasury Is Sitting On A $750 Billion Gold Hoard Officially Valued At $11 Billion Forbes Gold Hits New Record: Trump's Tariffs, Inflation Fears Drive Safe Haven Surge
Economic Times
02-06-2025
- Business
- Economic Times
Gold prices to witness big moves, may hit Rs 1.10 lakh/10g in one year. Is now the time to buy?
Gold is poised for a significant rally over the next 12 months, with prices in India expected to surge to as high as Rs 1,10,000 per 10 grams and $4,000 per ounce in the global market amid the persisting geopolitical uncertainties. ADVERTISEMENT According to a report by Angel One, gold prices should accumulate near the Rs 85,000 level when meaningful dips occur. 'Investors with a long-term perspective... should accumulate on every dip, taking advantage of value average for higher returns,' the report said. Further, from a portfolio strategy standpoint, Angel One recommends maintaining a gold allocation of at least 10%. Analysts at Angel One noted, 'Our advice to investors is to allocate at least 10% of their portfolio allocation towards gold for better diversification.'Echoing a similar sentiment, Joni Teves, Precious Metals Strategist at UBS Investment Bank, also stated that she is bullish on gold and believes that diversification is likely to continue to drive prices higher.'We remain bullish on gold and think diversification should continue to drive prices higher. We don't think positioning is crowded and there is plenty of room for investors to continue building gold allocations,' Teves said. ADVERTISEMENT Lingering worries over US fiscal deficits, globally surging bonds, Dollar weakness and intensifying trade war make a strong case for gold extending its rally further, though it is to be noted that markets are still somewhat sceptical of Trump's threat to the US Dollar Index has weakened 7% this year and is likely to fall further on US exceptionalism being put into question. USDINR volatility will significantly affect domestic gold prices. ADVERTISEMENT 'Gold bulls need to be cautious about the possibility of Trump shifting his stance on EU tariffs and progress in trade deals with other trading partners,' noted Praveen Singh of Mirae Asset Sharekhan.'A decisive breach of the resistance zone of $3365-$3371 may take the yellow metal to $3435 and will bring the all-time high of $3500 in focus,' Singh added while highlighting that he maintains a bullish stance on gold. ADVERTISEMENT After delivering strong gains over the past year and a half, the yellow metal continues to shine as a preferred asset for investors seeking long-term value and portfolio has historically proven to be a reliable wealth creator, especially in times of economic uncertainty, and recommends a strategy of value averaging for accumulation. ADVERTISEMENT Amid global macroeconomic shifts, central bank buying, and steady demand from jewellery and investment sectors, Angel One advises investors to allocate at least 10% of their portfolio to gold for better One, in its report, has also highlighted that gold has already delivered strong returns over the past one and a half years and continues to offer a compelling investment case for long-term one looks at the table below, it clearly states that investment in gold pays good returns. Hence, one should make investments in gold from a long-term the demand front, the report outlines that jewellery has consistently contributed over 50% of total gold demand for more than a decade. Additionally, central banks have emerged as a key source of demand post-COVID, with their interest in gold rising steadily over the past four years.'This trend will likely continue in 2025, boosting the yellow metal prices for the second half of 2025,' analysts at Angel One also emphasised the role of gold as a stable asset in uncertain times. 'Gold as an asset has been a good diversifier in any portfolio for decades,' the report said, adding that both geopolitical tensions and macroeconomic factors have influenced gold the supply side, it was mentioned that global gold supply has been steady at over 4,000 tons annually for the past decade, reinforcing the metal's fundamental strength. Also read: Bulls & bears played tug of war in June over last 10 years. Should you stay put or take a vacation? (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
02-06-2025
- Business
- Time of India
Gold prices to witness big moves, may hit Rs 1.10 lakh/10g in one year. Is now the time to buy?
Gold is poised for a significant rally over the next 12 months, with prices in India expected to surge to as high as Rs 1,10,000 per 10 grams and $4,000 per ounce in the global market amid the persisting geopolitical uncertainties. According to a report by Angel One, gold prices should accumulate near the Rs 85,000 level when meaningful dips occur. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Start Here - 2025 Top Trend Local network access control Esseps Learn More Undo 'Investors with a long-term perspective... should accumulate on every dip, taking advantage of value average for higher returns,' the report said. Further, from a portfolio strategy standpoint, Angel One recommends maintaining a gold allocation of at least 10%. Analysts at Angel One noted, 'Our advice to investors is to allocate at least 10% of their portfolio allocation towards gold for better diversification.' Echoing a similar sentiment, Joni Teves, Precious Metals Strategist at UBS Investment Bank, also stated that she is bullish on gold and believes that diversification is likely to continue to drive prices higher. Live Events 'We remain bullish on gold and think diversification should continue to drive prices higher. We don't think positioning is crowded and there is plenty of room for investors to continue building gold allocations,' Teves said. Lingering worries over US fiscal deficits, globally surging bonds, Dollar weakness and intensifying trade war make a strong case for gold extending its rally further, though it is to be noted that markets are still somewhat sceptical of Trump's threat to the EU. The US Dollar Index has weakened 7% this year and is likely to fall further on US exceptionalism being put into question. USDINR volatility will significantly affect domestic gold prices. 'Gold bulls need to be cautious about the possibility of Trump shifting his stance on EU tariffs and progress in trade deals with other trading partners,' noted Praveen Singh of Mirae Asset Sharekhan. 'A decisive breach of the resistance zone of $3365-$3371 may take the yellow metal to $3435 and will bring the all-time high of $3500 in focus,' Singh added while highlighting that he maintains a bullish stance on gold. After delivering strong gains over the past year and a half, the yellow metal continues to shine as a preferred asset for investors seeking long-term value and portfolio stability. Gold has historically proven to be a reliable wealth creator, especially in times of economic uncertainty, and recommends a strategy of value averaging for accumulation. Amid global macroeconomic shifts, central bank buying, and steady demand from jewellery and investment sectors, Angel One advises investors to allocate at least 10% of their portfolio to gold for better diversification. Angel One, in its report, has also highlighted that gold has already delivered strong returns over the past one and a half years and continues to offer a compelling investment case for long-term investors. If one looks at the table below, it clearly states that investment in gold pays good returns. Hence, one should make investments in gold from a long-term perspective. On the demand front, the report outlines that jewellery has consistently contributed over 50% of total gold demand for more than a decade. Additionally, central banks have emerged as a key source of demand post-COVID, with their interest in gold rising steadily over the past four years. 'This trend will likely continue in 2025, boosting the yellow metal prices for the second half of 2025,' analysts at Angel One said. It also emphasised the role of gold as a stable asset in uncertain times. 'Gold as an asset has been a good diversifier in any portfolio for decades,' the report said, adding that both geopolitical tensions and macroeconomic factors have influenced gold demand. On the supply side, it was mentioned that global gold supply has been steady at over 4,000 tons annually for the past decade, reinforcing the metal's fundamental strength. Also read: Bulls & bears played tug of war in June over last 10 years. Should you stay put or take a vacation? ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
