Latest news with #safehaven
Zawya
2 days ago
- Business
- Zawya
Gold prices climb as tariff jitters lift safe-haven demand
Gold prices climbed on Monday as an escalation in the Russian war in Ukraine and U.S. President Donald Trump's fresh threat to double tariffs on imported steel and aluminum prompted investors to seek refuge in safe-haven bullion. Spot gold was up 0.7% at $3,311.33 an ounce, as of 0416 GMT. U.S. gold futures rose 0.6% to $3,335.40. Trump said on Friday that he plans to raise tariffs on imported steel and aluminum to 50% from 25%, prompting the European Commission to warn that Europe is prepared to retaliate. "With trade and geopolitical worries bubbling to the surface once again, it's no surprise to see gold ticking higher to start the week," said Tim Waterer, chief market analyst at KCM Trade. Ukraine and Russia escalated hostilities ahead of their second round of peace talks in Istanbul, with a wave of attacks that included one of Ukraine's boldest strikes of the war and an overnight drone assault by Russia. "Risk assets are on the backfoot to start the week while a dip in the dollar is also keeping gold supported," Waterer said. The U.S. dollar index edged 0.1% lower, making bullion less expensive for overseas buyers. Markets are awaiting speeches from several U.S. Federal Reserve officials this week for cues on the monetary policy outlook, with Fed Chair Jerome Powell set to speak later in the day. Fed Governor Christopher Waller said that interest rate cuts remain possible later this year even as the Trump administration's tariff regime is likely to push up price pressures temporarily. Gold, which is considered as a safe-haven asset during the time of geopolitical and economic uncertainty, tends to thrive in low-interest rate environment. Meanwhile, Trump and Chinese President Xi Jinping are expected to speak soon to iron out trade issues including a dispute over critical minerals, according to Treasury Secretary Scott Bessent on Sunday. Elsewhere, spot silver rose 0.3% to $33.08 an ounce, platinum was down 0.4% at $1,051.63 and palladium fell 0.3% to $967.62. (Reporting by Anmol Choubey in Bengaluru; Editing by Sherry Jacob-Phillips)
Emirates 24/7
2 days ago
- Business
- Emirates 24/7
Gold prices climb on softer dollar, Trump's fresh tariff threat
Gold Prices Rise as Trump Threatens Tariff Hike; Weaker Dollar Lends Support Gold prices climbed on Monday as U.S. President Donald Trump threatened to double tariffs on imported steel and aluminum, while a weaker dollar also supported greenback-priced bullion. FUNDAMENTALS Spot gold was up 0.6% at $3,309.89 an ounce, as of 0056 GMT. U.S. gold futures also climbed 0.6% to $3,333.30. The U.S. dollar index edged 0.1% lower, making bullion less expensive for overseas buyers. Trump said on Friday that he plans to raise tariffs on imported steel and aluminum to 50% from 25%, prompting the European Commission to warn that Europe is prepared to retaliate. Geopolitical tensions escalated as Ukraine and Russia sharply ramped up the war with one of the biggest drone battles of their conflict, a Russian highway bridge blown up over a passenger train and an ambitious attack on nuclear-capable bombers deep in Siberia. Gold is considered a safe-haven asset during geopolitical and economic uncertainty. Meanwhile, Trump and Chinese President Xi Jinping are expected to speak soon to iron out trade issues, including a dispute over critical minerals, according to Treasury Secretary Scott Bessent on Sunday. On Friday, the U.S. Personal Consumption Expenditures Price Index saw a year-on-year increase of 2.1% in April, versus a 2.2% forecast. Investors now see a 50-basis-point rate cut by the U.S. Federal Reserve this year, starting in October. Fed Governor Christopher Waller said that interest rate cuts remain possible later this year, even as the Trump administration's tariff regime is likely to push up price pressures temporarily. Elsewhere, spot silver rose 0.2% to $33.04 an ounce, platinum was down 0.2% at $1,054.28, and palladium was steady at $970.79. DATA/EVENTS (GMT) 0600 – Nationwide House Price MM, YY 0750 – HCOB Manufacturing PMI 0755 – HCOB Manufacturing PMI 0800 – HCOB Manufacturing Final PMI 0830 – S&P Global Manufacturing PMI 1345 – S&P Global Manufacturing PMI Final 1400 – ISM Manufacturing PMI Follow Emirates 24|7 on Google News.
CBC
4 days ago
- Business
- CBC
Gold is part of India's social fabric. As prices soar, customers watch, wait but, ultimately, still buy
Social Sharing Sidheshwar Shirsath, who lives in the suburbs of India's financial capital, Mumbai, first started buying gold when he got married nine years ago. Shirsath, 35, works as a driver and earns about 55,000 rupees ($889 Cdn) a month. He decided that gold might be a good way to build a nest egg for his family's future. Whenever he had some cash to spend, he purchased gold jewelry, including rings and bangles, and he now has about 130 grams of gold, worth more than one million rupees ($16,000 Cdn). "Sometime after I first bought gold, the rates started increasing, so my interest in investing in it also grew," Shirsath said. In recent months — to his delight — the price has skyrocketed. Gold globally was trading at $3,298 US an ounce on Friday morning, up more than 25 per cent since the start of the year, and up 42 per cent compared with a year ago. Gold's value globally has surged amid global economic uncertainty and geopolitical tensions, including concerns about the impact of U.S. President Donald Trump's tariff policy. The precious metal is often seen as a "safe haven" asset that investors flock to during periods of economic turbulence. 'Gold is a part of the social fabric' In India, the price has risen even more sharply and is up 30 per cent since the beginning of the year — with the additional increase driven by the rupee's depreciation against the American dollar. But for many Indians, like Shirsath, gold is more than an investment. "Gold is very close to Indian women," he said, his wife, Manisha, sitting next to him in their modest home, adorned with a heavy gold choker and gleaming bangles. "They need gold — especially for festivals and weddings." In India, gold is primarily purchased it in the form of jewelry because it can be a way of showing off one's wealth and status. The precious metal also holds enormous religious and cultural significance. It is part of the dowry in weddings, for example, and it is considered to be auspicious to buy gold during certain Hindu festivals. "India is a very unique market for gold ," said Sachin Jain, regional CEO, India, for the World Gold Council, a global industry association. "Gold is a part of the social fabric, and you don't need to be in any particular economic strata to consume gold. "We all in India have a family doctor, so to say, and we have a family jeweller." India among world's largest gold consumers In rural India, where most of the country's 1.4 billion people still live — and with many not having easy access to bank accounts — gold is a popular way of storing savings, Jain said. All of this means that India is one of the world's largest consumers of gold, with the country's demand for the precious metal hitting about 800 tonnes a year. The steep price, however, is having an impact on the quantity of the metal that people are buying. "With jewelry consumption, whenever the price of gold goes up, the consumer waits and watches," Jain said. "The moment it gets a bit settled, we see consumers come back." The World Gold Council's data shows that demand for gold in India in the first three months of this year stood at 118.1 tonnes, down by 15 per cent compared with the first quarter of last year. But because the price is up, the value of the country's gold demand — which is the quantity of gold that is bought or invested — in the first quarter of this year actually rose by 22 per cent, to reach 940 billion rupees ($15.1 billion Cdn). "People are buying lower quantities," said Colin Shah, managing director of Kama Jewelry, a Mumbai-based manufacturer. "They all have budgets. If someone has $2,000 to spend, they'll spend that and buy a lower volume." But, he said, that gold has by no means lost its shine, despite its high price. "In India, there is a culture of gold, and nobody is going to stop buying gold because of pricing," Shah said. "Actually, they'll have more confidence in the category due to the return they are making on their money." Investing in gold digitally is on the rise With Indians' appetite to own gold showing no signs of easing, the government in recent years has taken a series of steps to try to ensure that gold is brought into the formal economy. These include lowering the import duty on gold last year to six per cent from 15 per cent, partly as a way of making it less attractive for people to smuggle gold into the country to avoid paying high taxes. The government also offers sovereign gold bonds as an alternative to physical gold. The World Gold Council's Jain said that Indians are increasingly investing in gold digitally, for example, through exchange-traded funds (ETFs) — and the price surge has only encouraged people to look at these options. "The young generation is getting more and more savvy, and with the ease of technology, we believe that investment into gold and gold assets is going to get a little more digital," he said. Gold investment demand, including ETFs, rose by seven per cent in India to 46.7 tonnes in the first quarter, according to the World Gold Council. JPMorgan forecasts that the price of gold could hit $4,000 US an ounce next year. Shirsath said that he and his family have more than enough jewelry now, but he still wants to keep buying gold. "My next plan is to buy gold coins or go for bonds."
Wall Street Journal
26-05-2025
- Business
- Wall Street Journal
Gold Edges Higher Amid Geopolitical Tensions
2339 GMT — Gold edges higher in the early Asian session. Russia recently launched its largest-ever drone-and-missile assault on Ukraine, according to Ukrainian officials, defying President Trump's calls for an end to the bombardment. For this week, geopolitical tensions will likely continue to lead safe-haven buying for investors worldwide, Angel One's 543235 -2.97%decrease; red down pointing triangle Prathamesh Mallya says in an email. The rally in the precious metal could extend toward $3,500/oz, says the deputy vice president of Research, Non-Agro Commodities and Currencies. Spot gold is 0.1% higher at $3,347.12/oz. (
Zawya
26-05-2025
- Business
- Zawya
Gold falls after Trump extends tariff deadline on EU goods
Gold prices fell on Monday after U.S. President Donald Trump reversed course on his threat to impose 50% tariffs on goods from the European Union from June 1, reducing demand for the safe-haven asset. Spot gold was down 0.8% at $3,329.78 an ounce, as of 1036 GMT. U.S. gold futures fell 1.1% to $3,329.20. "I would call it a range-trading day," said Giovanni Staunovo, UBS analyst, attributing the modest drop in prices to Trump's decision to delay the imposition of higher tariffs on the EU. "With U.S. Memorial Day, activity is likely to be on the lower end today." Markets in the United States and Britain were closed on Monday due to public holidays. Trump on Sunday restored a July 9 deadline to allow for talks between Washington and the European Union to produce a deal. Gold prices recorded their best week in six last week, after Trump renewed tariff threats on EU goods and said he was considering a 25% tariff on any Apple iPhones that are sold in the U.S. but not made there. The dollar index fell to a near one-month low against its rivals. "We still look for higher prices over the coming months, expecting the yellow metal to retest the level of $3,500/oz," Staunovo said. Meanwhile, China's net gold imports via Hong Kong more than doubled in April from March, and were the highest since March 2024, Hong Kong Census and Statistics Department data showed on Monday. Citi on Sunday upgraded its zero-to-three month price target for gold back to $3,500/oz - from $3,150 on May 12 - amid U.S. tariff policies, geopolitical risks and concerns around the U.S. budget. The bank expects gold prices to consolidate between $3,100/oz and $3,500/oz. Geopolitical risks include the war in Ukraine. Russia attacked Ukraine for a third night in a row, Ukrainian regional officials and emergency services said, a day after the biggest aerial attack of the war so far killed at least 12 people. Spot silver fell 0.5% to $33.31 an ounce, platinum was down 0.8% to $1,086.2 and palladium lost 0.7% to $985.51. (Reporting by Anmol Choubey in Bengaluru, additional reporting by Ishaan Arora; Editing by Janane Venkatraman and Susan Fenton)
