Latest news with #LukmanOtunuga
Sky News
17-04-2025
- Business
- Sky News
Why have gold prices hit record highs?
Gold has been reaching record highs of late, with the price of spot gold hitting $3,357.40 (£2,532) per ounce for the first time ever on Wednesday. It marked a rise of around $700 (£528) this year and comes at a time of significant uncertainty over Donald Trump's tariffs on imports into the US. That is no coincidence. That's because gold is a tangible commodity - a physical good that can be bought and sold. Gold prices fell more than 1% on Thursday after a sharp rise in the previous session as investors booked profits ahead of a long Easter weekend. An estimated 3,000 tonnes are mined each year, with China mining the most gold in 2024, followed by Russia, Canada and the US. And the Bank of England holds the world's second biggest known trove, with roughly 400,000 gold bars worth billions of pounds sitting in its vaults. So why is it going up in value? Gold considered a 'safe haven' The precious metal is known as a "safe haven" - an asset that typically retains or increases in value during times of market turbulence or economic uncertainty. Investors typically flock to safe havens to protect their capital from losses when markets are volatile. So it's perhaps no surprise that its value has skyrocketed at a time when markets around the world have been unsettled by the introduction and temporary rolling back of some US tariffs. "Gold remains heavily supported by a broadly weaker dollar, uncertainty around tariff announcements and fears about a global recession," said Lukman Otunuga, senior research analyst at online trading broker FXTM. Singapore-based dealer GoldSilver central managing director Brian Lan added: "Gold will continue to be strong as long as there's uncertainty." Gold saw a similar surge at the start of the COVID-19 pandemic, but has been on an upward trend for years. Those in favour of investing in gold argue it can serve to diversify and balance your investment portfolio, as well as mitigate possible risks down the road. Some also take comfort in buying something tangible that has the potential to increase in value over time, and which isn't directly tied to global currencies. But gold sceptics warn people to be wary. The Commodity Futures Trade Commission has previously warned that precious metals can be highly volatile, and prices rise as demand goes up - meaning "when economic anxiety or instability is high, the people who typically profit from precious metals are the sellers". It adds that if you do choose to invest in gold, it's important to educate yourself on safe trading practices and be cautious of potential scams and counterfeits on the market. And while gold being a tangible currency is in many ways seen as a plus, it also means it can run out; and some analysts estimate it will do so in less than three decades.
National News
17-04-2025
- Business
- National News
Gold zooms past $3,300/oz as investors seek shelter from tariff war
NNA - Gold prices extended their record run on Wednesday to breach $3,300 per ounce, as a weaker dollar and escalating U.S.-China trade tensions pushed investors towards the safe-haven asset. Spot gold climbed 3.1% to $3,327.97 an ounce as of 1:45 p.m. ET (1745 GMT), after hitting a record high of $3,332.89 earlier in the session. U.S. gold futures gained 3.3% to settle at $3,324.50. "Gold remains heavily supported by a broadly weaker dollar, uncertainty around tariff announcements and fears about a global recession," said Lukman Otunuga, senior research analyst at FXTM.--Reuters ==========R.H.
Trade Arabia
16-04-2025
- Business
- Trade Arabia
Gold breaks $3,300 for first time in history as tariff war ramps up
Gold has set a new record by crossing a milestone level of $3,300 for the first time in history. The gold price has jumped 40% over the last 12 months, said media reports. Spot gold hit a record of $3,317.90 per ounce on Wednesday, resuming a rally based on U.S. President Donald Trump's tariff policies, robust central bank buying and prospects of interest rate cuts by the Federal Reserve, reported Reuters. On April 16, gold touched an intraday high of $3,318 and with the continued uncertainty around US trade policies, along with weakness in the US Dollar, gold is set to create history. Major banks and industry experts remain optimistic about gold's prospects over the coming quarters, as investors add to their holdings in gold-backed exchange-traded funds (ETFs) and central banks continue to accumulate bullion. Washington's latest signals point to a more difficult trade relationship with China, which will increase demand for safe-haven assets like silver and gold. Fueling gold's rally, US President Donald Trump on Tuesday ordered a probe into possible tariffs on all critical minerals imports, marking another escalation in his dispute with global trade partners and an attempt to pressure industry leader China. "Gold remains heavily supported by a broadly weaker dollar, uncertainty around tariff announcements and fears about a global recession,' Lukman Otunuga, senior research analyst at FXTM, commented. 'Beyond $3,300, it's all about psychological levels for gold prices. Bulls may target $3,400, $3,500, and upwards. However, a bout of profit-taking or positive US-China trade developments could trigger a selloff,' stated Otunuga. Gold has hit a series of record highs and crossed multiple key thresholds in recent months as US President Donald Trump and his unpredictable tariff policies wreaked havoc on the global markets. For the year, bullion has risen 27% — making it one of the top-performing assets so far, reported Meanwhile Bloomberg reported that gold briefly pared gains following a report that China is open to trade talks if the US names a point person to represent the country and shows respect by reining in disparaging remarks, according to a person familiar with the Chinese government's thinking. The precious metal has climbed more than 26% this year and hit a series of record highs as the escalating trade war creates anxiety over a possible global recession and as investors struggle to take long-term positions due to the unpredictability of tariff announcements from Washington. "I'd love to have a pound for every time someone said it's a record high in gold in the last few weeks," Evy Hambro, thematic and sector investing global head at Blackrock said on Bloomberg Television. 'The gold market is kind of thriving in this period of uncertainty, but the foundations are very tangible and real.' Gold ETFs saw an inflow of 226.5 tonnes worth $21.1 billion in the first quarter of 2025, the largest in three years. Central bank purchases were robust in March, with China adding to its reserves for the fifth straight month. "Gold prices reached a new all-time high today, solidifying their status as the preferred safe-haven asset in an increasingly complex global environment. Midweek trading saw the precious metal surge over 2.5%, firmly breaching the $3,300 per ounce psychological and technical barrier, with an intraday high of $3,317.90," stated Quasar Elizundia, an expert research strategist at Pepperstone. "This remarkable rally occurs against a backdrop of persistent macroeconomic and geopolitical uncertainty. Gold's ascent is not an isolated event, but rather a continuation of a strong trend driven by a combination of key factors: ongoing trade tensions, the structural weakness of the U.S. dollar, and increasing strategic diversification by central banks," explained Elizundia. He pointed out that the dollar's weakness, now trading near its lowest levels in three years, plays a pivotal role. A weaker dollar makes gold cheaper for investors using other currencies and reduces the relative appeal of dollar-denominated assets. This dynamic is eroding the perception of the dollar as a primary safe haven, directly benefiting gold, he noted.
Zawya
08-04-2025
- Business
- Zawya
Gold rebounds above $3,000/oz as trade war fears, weaker dollar support
Gold prices rose back above $3,000 per ounce on Tuesday as a weaker U.S. dollar and escalating trade tensions between the world's two largest economies lifted demand for the safe-haven asset. Spot gold was up 0.8% at $3,007.21 an ounce by 08:44 a.m. ET (1244 GMT), moving away from a more than three-week low touched on Monday in a pullback from last week's record high of $3,167.57. U.S. gold futures gained 1.6% to $3,021.90. "Despite falling for three consecutive sessions, gold remains bullish with trade tensions and the prospect of lower U.S. interest rates boosting its allure," said Lukman Otunuga, senior research analyst at FXTM. "A solid breakout above $3,055 may open the doors back toward $3,100 and $3,130. Sustained weakness below $3,000 could see gold slip toward $2,950 and $2,930." Concerns over a global trade war since U.S. President Donald Trump's announcement of reciprocal tariffs on April 2 have raised fears of a recession and prompted investors to take refuge in the safe-haven assets like gold. China has refused to bow to what it called "blackmail" from the U.S. as a global trade war ignited by Trump's sweeping tariffs showed little sign of abating. Gold, often used as a safe store of value during times of political and financial uncertainty, has risen 15% so far this year. Further helping gold, the dollar index fell against its rivals, making bullion less expensive for other currency holders. Investors are now looking forward to minutes from the U.S. Federal Reserve's latest policy meeting due on Wednesday for more clues on the path of rate cuts. Traders are pricing in about 40% chance of a Fed cut in May. Zero-yield bullion tends to thrive in a low interest rate environment. "The significant rise in rate cut expectations in recent days suggest that the gold price will soon rise again," Commerzbank said in a note. Elsewhere, spot silver gained 0.4% to $30.23 an ounce, platinum rose 1.3% to $925.33 and palladium eased 0.5% to $914.18.
Yahoo
06-03-2025
- Business
- Yahoo
Gold prices dip on profit-taking, US data in focus
By Rahul Paswan (Reuters) - Gold prices fell about 1% on Thursday as investors booked profits following a three-day rally, with markets eyeing U.S. jobs data for clues on the Federal Reserve's rate path amid rising global trade tensions. Spot gold, which dipped 0.5% to $2,904.51 an ounce as of 1211 GMT, has gained over 10% year-to-date. It hit a record high of $2,956.15 on February 24. U.S. gold futures also dropped 0.5% to $2,912.10. "Gold seems to be experiencing profit-taking as investors closely watch tariff developments with prices trading toward $2,900 ahead of the non-farm payrolls report," Lukman Otunuga, senior research analyst at FXTM, said. Market focus is pinned on an escalating global trade war after the U.S. imposed 25% tariffs on imports from Mexico and Canada on Tuesday along with fresh duties on Chinese goods. Asian stocks rose as investors held out hope that trade tensions could ease after U.S. President Donald Trump exempted some automakers from tariffs for a month. [MKTS/GLOB] Investors turn to gold as a safe haven asset when geopolitical and economic uncertainties loom. "Unless there is a fresh direction catalyst, the current bearish price action may drag gold lower. Should prices break below the $2,900, this may signal further downside toward $2,880," Otunuga said. The spotlight is on Friday's non-farm payrolls report, which is expected to show a gain of 160,000 jobs for February, economists polled by Reuters said. Meanwhile, platinum prices were flat at $964.68 per ounce. "We look for platinum to be undersupplied by 500,000 ounces, or 6.4% of demand, in 2025, keeping the metal in a deficit for a third consecutive year," UBS said in a note. "Our market deficit should further reduce the above-ground inventories below 3 million ounces and help prices to move to USD 1,100/oz this year." Spot silver dipped 0.7% to $32.39 an ounce and palladium shed 0.5% to $937.74. Sign in to access your portfolio
