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Gold Price News: Gold Hits Fresh All-Time High on Trade War Risk
Gold prices set another all-time high on Tuesday, as the markets continued to weigh the economic risks of US import tariffs, providing support to safe-haven assets. Prices rose to an intraday high of $2,847 an ounce on Tuesday, up from around $2,816 an ounce in late trades on Monday. The action translated into day-on-day gains of around 0.9% for gold.
US tariffs trigger Chinese response:
Precious metals prices continued to benefit from economic uncertainties amid trade tariffs announced by US President Donald Trump. The Trump administration delayed stated tariffs on imports from Canada and Mexico for a month, but went ahead with 10% duties on all goods imported from China. This prompted Asia’s giant economy to follow suit with targeted levies on imports of US oil, agricultural equipment and some vehicles, to begin on February 10th, unless a deal can be struck between the two nations.
A spiralling tit-for-tat round of tariffs involving an unknown number of countries could cause severe disruption to companies with cross-border supply chains. All this spells uncertainty for the global economy, making investors uneasy and more likely to seek out the sanctuary of safe havens like precious metals.
Market positioning:
Meanwhile, net long positions on gold futures on the US Comex platform increased slightly to 952.2 tonnes in the week to January 28, according to World Gold Council figures: Gold Open Interest Chart 2021. That compared with 943.1 tonnes in the previous week, the figures showed. Read More
Silver Price News: Silver Climbs to Eight-Week High
Silver prices put in a solid performance on Tuesday, rising to an eight-week high as precious metals saw increased interest amid worries over threats to international trade. Prices climbed as high as $32.56 an ounce on Tuesday, up from around $31.72 an ounce in late trades on Monday. However, prices eased lower to around $32.18 an ounce later in the session to pare the day-on-day gains.
Silver shines as gold hits fresh highs:
Silver’s gains came in the context of fresh all-time highs for gold prices on Tuesday, as the markets took support from worries over the global economic outlook. Recently announced US tariffs against Chinese imports were met with targeted levies by China against certain US goods. While these new border charges between the world’s two largest economies remain limited, they do highlight the risk of a wider trade war that could involve other countries – an outcome that already supports renewed interest in perceived safe-haven assets like precious metals.
US figures bolster case for rate cuts:
Adding further support, the US JOLTs job openings and factory orders figures for December, both came in well below market expectations on Tuesday. The weaker-than-expected economic data strengthened the case for further interest rate cuts by the US Fed this year, which may be needed to reduce business borrowing costs to stimulate the economy. Lower interest rates tend to support precious metals prices as they cut the opportunity cost of holding non-yielding assets. Read More
Gold will do well in 2025 but silver prices will do much better - AuAg Fund’s Strand
While gold is expected to perform well this year, with one firm predicting prices hitting $3,300 an ounce, investors are also being encouraged to pay attention to other metals.
Despite gold's expected success in 2025, Eric Strand, founder of the boutique precious metals firm AuAg Funds, anticipates that silver will perform even better. In his latest silver outlook, Strand said he expects silver to retest its 2011 all-time highs near $50 an ounce.
Strand’s bullish outlook comes as silver tests initial support near $32 an ounce. At the same time, silver continues to struggle to get out from under gold’s shadow, with the yellow metal trading near record highs above $2,800 an ounce. The gold/silver ratio (GSR) has declined from its one-year high but remains elevated above 88 points. The ratio’s long-term historical average is around 60 points.
“Currently, the GSR stands at a high 90:1, making silver particularly attractive as an investment,” Strand said. “Our short-term target for 2025 is for GSR to go towards 70:1, then gradually to 50:1, and then over several years, to 30:1. A GSR of 70:1, combined with a gold price of 3,000 – 3,300 USD, would give a silver price of 42 – 47 USD per troy ounce, which would be equivalent to an annual return of +45% and +62% respectively.”
Strand said he is bullish on silver this year due to its dual role as both a monetary and critical industrial metal. Read More
Asian metals hubs join London as they reverse gold flows into the U.S., but the bullion crisis may be overblown
After weeks of reports that London’s gold stocks are being withdrawn and moved to the United States, new reports indicate that the unprecedented flows of physical bullion may be a worldwide phenomenon.
“Global bullion banks are flying gold into the United States from trading hubs catering to Asian consumers, including Dubai and Hong Kong, to capitalize on the unusually high premium that U.S. gold futures are enjoying over spot prices,” Reuters reporter Rajendra Jadhav wrote on Monday.
Jadhav said that these bullion banks have traditionally facilitated the flow of gold Eastward to serve China and India, which accounts for nearly half of global gold consumption.
“But alarm about U.S. import tariffs planned by President Donald Trump has driven Comex futures prices substantially above spot prices in recent months, creating a lucrative arbitrage opportunity,” he said. Read More
Gold above $2,800 and climbing, geopolitical tensions fuel demand says MarketVector’s Joy Yang
Although a global trade war appears to have been averted for now, it hasn’t calmed the gold market. One market strategist said that geopolitical instability will continue to support gold prices through 2023.
In an interview with Kitco News, Joy Yang, Global Head of Index Product Management at MarketVector, said that even with gold at an all-time high above $2,800, it has room to run higher as geopolitical uncertainty is not going away. Spot gold last traded at $2,842.30 an ounce, up nearly 1% on the day.
Even as President Donald Trump has delayed his tariff threat against Mexico and Canada for 30 days, Yang explained that gold’s new safe-haven bid is bigger than a couple of trade disagreements.
“The president ran on an agenda of disruption, so he’s going to use shock and surprises because that is to his advantage in these negotiations,” she said. “It’s not just about specific tariffs or whether they happen or not. At some point, another surprise will emerge that markets aren’t prepared for,” she said. “Markets just don’t know how to navigate this environment, so it makes sense for gold prices to remain above $2,800 per ounce.”
But geopolitical uncertainty is not the only factor driving gold prices. Yang said that gold will be an important portfolio diversifier as investors continue to adjust to shifting expectations in the tech sector after China unveiled a cheaper AI product. Read More
Central banks buy more than 1,000 tonnes of gold in 2024 for the third year in a row - World Gold Council
Central banks continue to dominate the gold market, collectively buying more than 1,000 tonnes of gold in 2024 for the third year in a row and accounting for roughly 20% of total demand last year.
In its annual and fourth-quarter Gold Demand Trends report, published Wednesday, the World Gold Council said that total physical gold demand rose to 4,974 tonnes for the year, a record high.
The report noted that record demand helped drive gold prices to consecutive all-time highs. Quoting price data from the London Bullion Market Association, the average gold price in the fourth quarter rose to a record high of $2,663 an ounce. The average price for the year rose to $2,386 an ounce, up 23% compared to the average annual price in 2023.
“The combination of record gold prices and volumes produced a Q4 value of $111 billion. This took 2024 over the line to reach the highest-ever annual value of $382 billion,” the report said.
Along with central bank demand, the report said that investment demand for the yellow metal hit a four-year high as over-the-counter (OTC) demand outweighed relatively neutral demand for gold-backed exchange-traded funds. Read More
Gold prices holding at fresh record highs as ADP says 183K jobs were created in January
The gold market is holding firm, notching its fifth day of record highs, even as the U.S. labor market remains more resilient than expected. The private sector added more jobs than anticipated last month, according to private payrolls processor ADP.
On Wednesday, ADP reported that 183,000 jobs were created in January. The data beat expectations, as consensus forecasts had anticipated job gains of 148,000.
“We had a strong start to 2025, but it masked a dichotomy in the labor market,” said Nela Richardson, chief economist at ADP. “Consumer-facing industries drove hiring, while job growth was weaker in business services and production.”
However, the gold market is not paying much attention to economic data, as it remains a critical safe-haven asset due to growing geopolitical instability. Spot gold last traded at $2,861.20 an ounce, up 0.63% on the day.
The report also noted that wage growth is relatively stable. Year-over-year pay growth for job stayers was 4.7%; at the same time, pay growth for people who changed jobs increased by 6.8%. Read More
Stagflation fears are driving gold prices to fresh all-time highs – OANDA’s Wong
Growing fears of stagflation are driving gold prices to new all-time highs, according to Kelvin Wong, Senior Market Analyst at OANDA.
In an analysis published Wednesday morning, Wong said that rising Treasury yields and the specter of trade wars are combining to create a stagflationary environment, which has investors fleeing to gold.
“The recent three weeks of sideways movements of the US Dollar Index since its 52-week high of 110.18 printed on 13 January had a positive knock-on effect on gold prices,” he wrote. “Gold (XAU/USD) has staged a bullish breakout from its prior two-month range configuration on 21 January and rocketed by 4.4% to print a fresh intraday current all-time high of US$2,865 at this time of the writing.”
Wong noted that President Trump kicked off ‘Trade War 2.0’ on Saturday with sweeping tariffs on imports from Canada, Mexico, and China.
“Even though the 25% trade tariffs on Canada and Mexico have been delayed for a month, the 10% tariffs targeted on Chinese goods are now ‘lived’ and Chinese policymakers have retaliated by imposing 10% to 15% levies on US energy and agricultural exports to China with a targeted kick-in deadline on next Monday, 10 February,” he said. “In addition, China has also drawn up plans to disrupt key mineral supply chains in the US and curb business operations of US companies on the mainland. Google has been singled out for antitrust violations, and new export control orders have been issued on tungsten and other critical minerals used in electronic, aviation, and defence industries.” Read More
Gold gains after ISM Services PMI falls to 52.8 in January, prices moderate
The U.S. service sector weakened last month while prices moderated, according to the latest data from the Institute for Supply Management (ISM).
The ISM announced on Wednesday morning that its Services Purchasing Managers Index fell to 52.8 in January, down from December’s revised reading of 54.0. The data was worse than expected, as economists were looking for a reading of 54.2.
Readings above 50 in such diffusion indexes signify economic growth and vice-versa. The farther an indicator is above or below 50, the greater or smaller the rate of change.
Gold rose following the 10 am EDT release. Spot gold last traded at $2,871.66 for a gain of 1.03% on the daily chart. Read More
Gold futures surpass $2,900 as global trade war tensions escalate
Gold prices reached unprecedented heights today as the April futures contract breached $2,900 per troy ounce for the first time in history, marking the third consecutive trading session of record-breaking prices. While the precious metal briefly touched levels above $2,900, it settled at $2,883.50 by 4:40 PM EST, posting a modest gain of $7.70 or 0.27%.
Image Source: Kitco News
The surge in gold prices coincides with mounting concerns over international trade relations following President Trump's recent tariff announcements. The rally has been fueled by a combination of bullish market sentiment and a weakening U.S. dollar, with the dollar index falling 1.77% since Monday to reach 107.47, representing a decline of 0.34% in today's trading session alone.
The latest market turbulence stems from President Trump's February 1 announcement of substantial tariffs on key trading partners. The initial plan outlined a 25% tariff on all non-energy imports from Mexico and Canada (with energy resources subject to a 10% tariff) and a blanket 10% tariff on Chinese imports. While the implementation of tariffs on Mexican and Canadian goods has been temporarily suspended for 30 days pending further negotiations, the administration has maintained a firm stance on Chinese imports, proceeding with the announced tariffs as planned. Read More
Gold price explodes, is the commodities cycle next? Grant Williams
As gold price keeps hitting new record highs on quickly rising global tensions, is the commodities cycle ready to surge as well? Grant Williams, author and host of the Grant Williams Podcast, warns of investors of shifting geopolitical landscapes and the debasement of currencies, suggesting a significant shift in the global order.
“It feels like we're getting to a point where people are going to start putting money to work in commodities again,” Williams told Kitco Mining on the sidelines of the Vancouver Resource Investment Conference.
He noted that the equity markets, particularly tech, are overvalued and that “the debasement of currencies is happening at a much, much faster rate and people are going to want to own physical assets”.
Williams pointed to precious metals, particularly gold, as a safe haven in the current climate. "There's a terrific tailwind behind precious metals, particularly gold," he said, adding, “silver will catch up at some point, but the weight behind gold is very much safe-haven buying”.
Energy markets also have potential in this environment, especially with shifts in political leadership in the US and Canada, he added. Watch the podcast
Gold bulls keeping their foot on the gas
Gold prices are higher and hit another all-time high in midday U.S. trading Wednesday, as safe-haven demand continues to push the yellow metal into uncharted territory. Traders and investors remain jittery amid U.S. President Trump’s unpredictable and potentially disruptive policy actions. China-U.S. trade tensions are running high as both nations this week have ratcheted up their tariffs and taken other hostile business steps against the other. April gold was last up $22.10 at $2,898.00. March silver prices hit a seven-week high overnight and were last down $0.052 at $32.97.
Trump’s policy moves recently are mostly overshadowing routine U.S. economic data releases. Friday comes the U.S. employment situation report for January, with the key non-farm jobs number seen coming in at up 169,000 versus a rise of 256,000 in the December report.
Technically, April gold futures bulls have the strong overall near-term technical advantage. Prices are trending up on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $3,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,800.00. First resistance is seen at today’s contract high of $2,906.00 and then at $2,915.00. First support is seen at the overnight low of $2,870.10 and then at $2,850.00. Wyckoff's Market Rating: 9.5.
Image Source: Kitco News
March silver futures bulls have the overall near-term technical advantage amid a price uptrend in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $34.00. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at the overnight high of $33.215 and then at the December high of $33.33. Next support is seen at the overnight low of $32.63 and then at Tuesday’s low of $32.225. Wyckoff's Market Rating: 6.5. Read More
Image Source: Kitco News
Gold rush warning: Is this a sign of impending economic collapse? Robert Kaplan
Amidst record gold prices, geopolitical strategist Robert D. Kaplan suggests that the rush to hoard gold may signal that major players are preparing for deeper financial instability.
Kaplan, author of 'Wasteland: A World in Permanent Crisis,' observes that central banks buying gold may indicate preparations for capital flight or a "deepening economic-political crisis with the U.S." According to Kaplan, hoarding gold often means one is pessimistic about the near and mid-term future. "That could be a danger signal," he added.
According to the latest report by the World Gold Council, central banks dominated the gold market last year, collectively buying more than 1,000 tonnes of gold for the third year in a row.
In an era marked by escalating geopolitical tensions, economic instability, and the rise of authoritarianism, Kaplan suggests the world is entering a state of "permanent crisis," drawing parallels to the fragile Weimar Republic of the early 20th century. Watch the podcast
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
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