Rolling coverage of the latest economic and financial news
Gold has hit a new record high this morning, as nervous investors seek out a safe haven asset.
The spot price of gold has gained 0.6% today, to a new alltime high of $2,861.78 per ounce.
Investors have grown hopeful that the tariff delays for Mexico and Canada will mean that tariffs are ultimately avoided, whether that’s via further delays or some kind of deal.
If that does transpire, then that would avoid a major trade shock that hits growth and raises US inflation, hence the more positive market reaction over the last 24 hours. Nevertheless, there’s little doubt that markets remain pretty nervous about the whole situation, with tariff risk still being priced in to several key assets, and gold prices hit an all-time high.
Investors may look more relaxed now than they did at the start of the week, but havens continue to see increased demand on the back of growing global uncertainties under Trump’s hectic lead and with the prospects that the first weeks under Trump is just a foretaste of what’s to come in the next four years.
And there is not a better hedge than gold for protecting a portfolio from Trump worries: the more chaotic international relations become, the greater the demand—especially from central banks looking to reduce US exposure should Trump turn his focus on them.
Continue reading…Rolling coverage of the latest economic and financial newsGold has hit a new record high this morning, as nervous investors seek out a safe haven asset.The spot price of gold has gained 0.6% today, to a new alltime high of $2,861.78 per ounce.Investors have grown hopeful that the tariff delays for Mexico and Canada will mean that tariffs are ultimately avoided, whether that’s via further delays or some kind of deal.If that does transpire, then that would avoid a major trade shock that hits growth and raises US inflation, hence the more positive market reaction over the last 24 hours. Nevertheless, there’s little doubt that markets remain pretty nervous about the whole situation, with tariff risk still being priced in to several key assets, and gold prices hit an all-time high.Investors may look more relaxed now than they did at the start of the week, but havens continue to see increased demand on the back of growing global uncertainties under Trump’s hectic lead and with the prospects that the first weeks under Trump is just a foretaste of what’s to come in the next four years.And there is not a better hedge than gold for protecting a portfolio from Trump worries: the more chaotic international relations become, the greater the demand—especially from central banks looking to reduce US exposure should Trump turn his focus on them. Continue reading…
