Business

Gold hits record high in global market

Gold prices hit an all-time high on Monday, bolstered by safe-haven inflows after US President Donald Trump's tariffs on Canada, China and Mexico added to concerns of inflation that would dent economic growth.

Spot gold rose 0.8 percent to $2,818.99 per ounce by 01:45 p.m. ET (1845 GMT), after hitting a record of $2,830.49 earlier in the session.

US gold futures settled 0.8 percent higher at $2,857.10.

Despite the usual dampening effect of a strong dollar on the gold market, prices have been rallying due to the safe-haven demand driven by uncertainty surrounding Trump's tariffs, said David Meger, director of metals trading at High Ridge Futures.

The 25 percent tariffs imposed by Trump on Canadian and Mexican imports from Tuesday, along with a 10 percent charge on Chinese goods, fuelled fears of a trade war that could slow global growth and feed inflation.

Canada and Mexico ordered retaliatory measures while China said it would challenge the tariffs at the World Trade Organization and take unspecified countermeasures.

However, Trump announced a month-long pause on tariffs the US had slapped on Mexico.

The market is not fully convinced about the extent of the trade war, Bart Melek, head of commodity strategies at TD Securities, said.

"We haven't seen a complete response from gold and if this trade war continues for a considerable period, it could lead to significantly higher gold prices down the road," Melek added. Gold is often considered as a safe-haven investment during periods of economic or geopolitical instability.

JP Morgan said bearish contagion from equities could weigh on gold in the near term, but disruptive tariffs were a medium-term bull case for bullion.

Investors await data this week on US job openings, the ADP employment report and the US employment report to gauge the health of the US economy.

Comments

Gold hits record high in global market

Gold prices hit an all-time high on Monday, bolstered by safe-haven inflows after US President Donald Trump's tariffs on Canada, China and Mexico added to concerns of inflation that would dent economic growth.

Spot gold rose 0.8 percent to $2,818.99 per ounce by 01:45 p.m. ET (1845 GMT), after hitting a record of $2,830.49 earlier in the session.

US gold futures settled 0.8 percent higher at $2,857.10.

Despite the usual dampening effect of a strong dollar on the gold market, prices have been rallying due to the safe-haven demand driven by uncertainty surrounding Trump's tariffs, said David Meger, director of metals trading at High Ridge Futures.

The 25 percent tariffs imposed by Trump on Canadian and Mexican imports from Tuesday, along with a 10 percent charge on Chinese goods, fuelled fears of a trade war that could slow global growth and feed inflation.

Canada and Mexico ordered retaliatory measures while China said it would challenge the tariffs at the World Trade Organization and take unspecified countermeasures.

However, Trump announced a month-long pause on tariffs the US had slapped on Mexico.

The market is not fully convinced about the extent of the trade war, Bart Melek, head of commodity strategies at TD Securities, said.

"We haven't seen a complete response from gold and if this trade war continues for a considerable period, it could lead to significantly higher gold prices down the road," Melek added. Gold is often considered as a safe-haven investment during periods of economic or geopolitical instability.

JP Morgan said bearish contagion from equities could weigh on gold in the near term, but disruptive tariffs were a medium-term bull case for bullion.

Investors await data this week on US job openings, the ADP employment report and the US employment report to gauge the health of the US economy.

Comments

দ্রুত ন্যূনতম ঐকমত্য, তার ভিত্তিতে অতিদ্রুত নির্বাচনের প্রত্যাশা বিএনপির

বিএনপি মহাসচিব মির্জা ফখরুল ইসলাম আলমগীর বলেছেন, ‘আমরা আশা করব, খুব দ্রুত এই সংস্কারের ন্যূনতম ঐক্যমত্য তৈরি হবে। সেটার ওপর ভিত্তি করে অতিদ্রুত জাতীয় নির্বাচন অনুষ্ঠিত হবে।’

১ ঘণ্টা আগে