Gold price hits record high on looming US tariff fears

Open the Editor’s Marking Free

Rulla Khalaf, the FT editor, chooses its preferred stories in this week’s news.

On Thursday, gold hit a record record, as investors are angry at the potential US tariffs, as a growing bars growing in New York, lack in London.

The benchmark price up to $ 2,798 per troy ounce surpassing its October post and assumes its interests this year by 7%, as traders fence US Trade! Politics:

US President Donald Trump threatens to impose 25% tariffs for importing all country from Canada and Mexico on Saturday, causing fear in the market that can apply for tariffs goldwhich has historically been relieved of imports of imports.

The traders entertain Comex, New York Product Exchange Bull, where the inventories after the US election amounted to 75 percent. The cost of reserves on Thursday increased to $ 85 billion, presenting more than 30.4 billion trojan ounces, according to Comex data.

New York’s growth ruined stocks Available gold available in Londonwhere there is currently no queue of four to eight weeks to get it out of the Bank of England.

The weakening of the US dollar also helped to burn the golden assembly, as it makes it cheaper than using other currencies.

Moisturizing the market jacket, short positions for future gold fell have fallen to their lowest level, according to April 2020, a subsequent commodity committee.

“It is very worrying about the tariffs,” said Suk Cooper by the standard charter. “The attractiveness of the gold safe haven is really starting when there is a large-scale asset risk.”

The benefits of gold are usually from low interest rates, as the bars is not a harvested, but in recent months the ratio has been demolished.

On Thursday, Gold’s Risit came to the stable interest rates on the US Federal Reserve Stable and Chair Jay Powell warned the subsequent exchange rate cuts.

Cooper said that while gold is likely to fall into fresh heights in the coming weeks, the rally could slow down. “If in the first half of the year, let’s see the further exchange rate cuts that will support gold, then that tail will be destroyed in the second half of the year,” he said.

Mouf analysts also told customers that gold “stimulates far away in the short run”, as the market has turned into a jewelry fence against Trumpy Administration uncertainties.

“The central banks of the developing market continue to gain bars,” they added.