Thursday 26th April 2018,
Radio Metta

Global gold prices firm as investors await clarity on Donald Trump’s tariff plan

Loknath Das March 8, 2018 News Comments Off on Global gold prices firm as investors await clarity on Donald Trump’s tariff plan
Global gold prices firm as investors await clarity on Donald Trump’s tariff plan

Spot gold rose 0.2% to $1,328.81 per ounce by 1.34pm. It hit a one-week high on Wednesday at $1,340.42, before closing lower at $1,325.49 an ounce. Photo: Reuters

Spot gold rose 0.2% to $1,328.81 per ounce by 1.34pm. It hit a one-week high on Wednesday at $1,340.42, before closing lower at $1,325.49 an ounce. Photo: Reuters

Gold prices held steady on Thursday as investors awaited more details on US President Donald Trump’s proposed steel and aluminium tariffs, the outcome of the European Central Bank’s policy meeting, and US jobs data.

Spot gold rose 0.2% to $1,328.81 per ounce by 1.34pm. It hit a one-week high on Wednesday at $1,340.42, before closing lower at $1,325.49 an ounce. US gold futures were up 0.1% at $1,329.

“We see gold as a good hedge against rising equity market volatility and heightened political risks around trade tariffs, the Nafta deal and North Korea,” ANZ analysts said in a note.

Asian shares found some relief on Thursday as fears about a global trade war amid Trump’s push to introduce protectionist tariffs were tempered by signs that the move could include carve-outs for key partners.

The White House said on late Wednesday that Canada, Mexico and possibly other countries may be exempted at least for a while from the proposed steel and aluminium tariffs. Trump is expected to sign a presidential proclamation establishing the tariffs during a ceremony scheduled for 11.30pm on Thursday, a source familiar with the situation said.

“Gold is going to be choppy here and remain in rangebound trading … It is finding some support in the downside around $1,300 levels due to safe haven demand,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

Investors are also awaiting US non-farm payroll data due on Friday for more clarity on the pace of US rate hikes. Businesses are reporting persistent labour market tightness across the United States, with accelerating wage gains in many regions, the Federal Reserve said on Wednesday in a report that bolstered the case for interest rate increases.

“In the medium-term, gold will come under some pressure from interest rate hikes and will recover as it has done in the past,” Fung said.

The European Central Bank is all but certain to keep policy unchanged on Thursday but may tweak its communication stance to offer at least a few clues about its progress towards ending its unprecedented bond purchases later this year.

Meanwhile, holdings of SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, fell 0.03% to 833.73 tonnes on Wednesday from Tuesday.

Spot silver rose 0.4% to $16.55 an ounce. Platinum was down 0.1% at $951.80, after hitting its lowest since Jan. 4 at $945.70 in the previous session. Palladium edged up 0.4% to $972, after dropping to its lowest since Feb. 9 at $961.55 on Wednesday. Reuters

[“Source-livemint”]

Like this Article? Share it!

About The Author