Gold Hits Another Record High As Trump Fuels Haven Demand

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Gold touched an all-time peak above US$2,921 an ounce after Donald Trump imposed 25% tariffs on all US steel and aluminium imports. (EPA Images pic)SINGAPORE: Gold hit a record high after President Donald Trump imposed 25% tariffs on all US steel and aluminium imports, adding to uncertainty across global markets that’s boosting demand for havens

Bullion touched an all-time peak above US$2,921 an ounce — after surging 1.7% in the previous session. Trump said on Monday that the levies, which go into effect on March 4, would help bolster domestic production and bring more jobs to the US, and warned the tariffs “may go higher.”
The precious metal has rallied 11% this year, setting a series of records, as Trump’s disruptive moves on trade and geopolitics reinforce its role as a store of value in uncertain times.
Markets are also trying to get a read on the potential implications for the US economy and monetary policy if the White House’s policies reignite inflation and subdue growth.
Investors will be focused on Federal Reserve Chair Jerome Powell’s testimony before Congress on Tuesday and Wednesday for clues about the monetary policy trajectory.
Short-term inflation expectations have risen above longer-term ones to the widest gap since 2023, with the so-called five-year breakeven rate reaching 2.64% on Monday. That may support the case for a slower pace of easing, a scenario that, in theory, would be bearish for bullion since it pays no interest.
Elsewhere, China’s central bank expanded its gold reserves for a third month in January, signalling ongoing commitment to diversify holdings even with prices at historically high levels.
Asia’s largest economy also announced a pilot programme to allow 10 major insurers to invest as much as 1% of their assets in bullion for the first time. That would translate into a potential 200 billion yuan (US$27.4 billion) of funds, Minsheng Securities Co said in a note.
Spot gold rose 0.4% to US$2,919.23 an ounce as of 7.50am in Singapore. The Bloomberg Dollar Spot Index added 0.1% after climbing 0.2% on Monday. Silver and platinum edged higher, while palladium dipped. - FMT

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