Gold rises 63% for the year and updates all-time high again - Reuters
Kyiv • UNN
Gold hit an all-time high of $2942 per ounce amid changes in US trade policy. The growth was driven by central bank purchases and investors' search for a safe haven.
Gold hit a new all-time high, exceeding $2,942 per ounce, while stock markets declined amid changes in US trade policy. Writes UNN with reference to Reuters.
Gold hit a record high, the dollar remained stable, and stock markets declined on Tuesday as investors speculated on changes in US trade policy and Federal Reserve Chairman Jerome Powell's speech on tariffs and inflation.
Oil prices rose sharply, with Brent futures exceeding $76 per barrel. European stock futures, in particular the FTSE, remained unchanged, while US futures fell by 0.2%.
The day before, Donald Trump raised tariffs on steel and aluminum imports to 25%, which sent shares of US steel companies soaring. He also promised to announce global retaliatory measures soon.
At the same time, Trump said that he was considering excluding Australia from the tariffs after talks with the country's prime minister, which increased investors' expectations of potential diplomatic solutions.
China's tariffs on U.S. energy and certain goods went into effect on Monday, but the Hang Seng Index (.HSI) hit a four-month high as investors hoped for a possible resolution of the trade dispute.
Despite the index's 0.4% decline on Tuesday, its gain for the month exceeded 12%, mainly due to interest in the artificial intelligence sector and chipmakers. At the same time, the stock markets of mainland China showed a slight decline.
He's a businessman by nature, so at some point deals have to be made. That's why the market has been balanced (in its reaction)
Electric vehicle stocks were a key driver of Hong Kong trading, with BYD hitting a record high after the company launched a free smart driving feature for most models, including the Seagull, which costs only $9,555. Other sectors of the stock market experienced significant declines.
Gold rose to a record $2,942 an ounce, up 63% from the low of $1,809.50 on October 23, 2023. According to Shane Oliver, head of investment strategy at AMP in Sydney, the rise in gold is due to active buying by central banks, investors' desire for a “safe haven” and positive momentum that is driving further demand.
On the foreign exchange market, the Chinese yuan weakened to 7.3042 per dollar, breaking the 7.3 level. The Australian dollar remained stable at $0.6278. The US dollar held at 152.01 yen, while the euro traded at $1.03.
At the same time, the Canadian dollar and the Mexican peso weakened, as these countries were the most affected by the new metals tariffs imposed by Donald Trump. On Tuesday, Fed Chairman Jerome Powell will deliver a semi-annual monetary policy report to the Senate Banking Committee, and his comments on tariffs and inflation will be closely watched by markets.
The benchmark yield on 10-year US Treasury bonds closed at 4.495%, and Asian markets did not trade in these securities due to a public holiday in Japan. At the same time, traders are not yet paying attention to Trump's statements questioning the US national debt figures.
The markets want more details on what exactly Trump was referring to, whether it is internal agency ownership of the national debt or the accounting of Treasury bonds
“I'm just guessing, but it will be interesting to see if more information comes out on this in the coming days,” he added.
Recall
Last week, the price of gold rose to an all-time high, exceeding $2,870 per ounce, which was the result of active purchases by central banks, inflation fears, and geopolitical risks.
