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Axios
11-08-2025
- Business
- Axios
Gold investors remain bullish amid tariff scramble
A U.S. government agency ruled that gold bars from Switzerland would be subject to tariffs. Gold prices shot up. Then the administration announced it would issue a new policy to exempt the gold bars. Why it matters: The snip-snap approach to tariffs roiled bullion prices, but investors say they are bullish with or without the tariffs. Catch up quick: Switzerland is one of the largest gold refiners in the world, exporting over $50 billion worth over the 12 months ending in June. Gold exports spiked early this year as investors sought to frontload tariffs, according to HSBC. What they're saying:"This action further bolsters our bullish outlook for gold prices, with these tariffs set to disrupt the flow of gold globally and push both the US and global price higher," Trevor Yates, senior investment analyst at Global X, wrote in a note. Between the lines: There are still several catalysts ahead for gold demand, according to Bob Iaccino, chief market strategist at Path Trading Partners and author of the Finance Unfiltered newsletter. Volatility amid tariff uncertainty would be good for gold, since it is still considered a safe haven asset. Rate cuts could be another tailwind. Central bank purchases of gold also continue to climb amid a de-dollarization push driven by tariff policy by the administration. Zoom out: Investors have been riding the gold gravy train all year, according to the latest Gold Demand Trends report from the World Gold Council. Gold ETF inflows hit 170 metric tons in the second quarter of 2025, valued at nearly $400 billion, the strongest first half finish since 2020. Retail investment rose 11% year-over-year, driven by demand in China. Central banks added 166 metric tons in the second quarter, with 95% of reserve managers expecting central bank buying to keep exacerbating. Yes, but: There remains uncertainty about what reciprocal tariffs on other gold-exporting countries could mean for the precious metal. The only two countries the U.S. gets more gold from than Switzerland are Canada and Mexico. Be smart: According to Bloomberg, managers at gold refineries are already pausing shipments until there is more clarity on levies. Tariffs could also have severe implications for how gold futures are traded.
Zawya
11-03-2025
- Business
- Zawya
Gold drifts higher ahead of US inflation data
Gold prices rose on Tuesday, supported by safe-haven flows as trade war concerns sapped risk sentiment across wider markets, while attentions was on U.S. inflation data. Spot gold climbed 0.7% to $2,908.94 an ounce as of 0844 GMT after hitting its lowest since March 3 in the previous session. U.S. gold futures rose 0.5% to $2,913.70. The dollar index hit a four-month low, making bullion less expensive for overseas buyers, while the benchmark 10-year U.S. Treasury yield also fell. U.S. President Donald Trump's fluctuating trade policies - imposing and delaying tariffs on Canada and Mexico, while raising duties on Chinese goods - have roiled the global financial markets. China and Canada have responded with tariffs of their own. "In the short-term we expect investor focus to remain on the effect policy changes, in particular tariffs, will have on U.S. growth and inflation expectations and how this could not only affect real rates but also further incentivize global central bank purchases," said Trevor Yates, analyst at Global X. Over the weekend, Trump declined to predict whether the U.S. could face a recession amid stock market concerns about his tariff actions. "All eyes will be on Wednesday's U.S. February CPI print, with us expecting the pace of inflation to slow during the month," Yates said. Federal Reserve Bank of New York's latest Survey of Consumer Expectations showed inflation a year from now is seen at 3.1%, up a hair from January's 3% reading. Markets currently expect Fed to cut in rates in June. However, gold's role as a hedge could weaken if high inflation leads to sustained higher interest rates, as it yields no interest. Spot silver added 0.8% to $32.35 an ounce, platinum was up 0.5% to $962.40 and palladium gained 0.3% to $945.43. (Reporting by Rahul Paswan in Bengaluru; Editing by Varun H K)
