Safe-haven Gold Rises on Trump Tariff Worries

Ingots of 99.99 percent pure gold are placed in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/FILE PHOTO
Ingots of 99.99 percent pure gold are placed in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/FILE PHOTO
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Safe-haven Gold Rises on Trump Tariff Worries

Ingots of 99.99 percent pure gold are placed in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/FILE PHOTO
Ingots of 99.99 percent pure gold are placed in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/FILE PHOTO

Gold prices rose on Thursday as investors worried about potential import tariffs from US President Donald Trump, while investors awaited a key inflation report to gauge the Federal Reserve's policy path.

Spot gold was up 0.7% at $2,777.55 per ounce, as of 1227 GMT. US gold futures climbed 0.9% to $2,794.

"Despite the fact that tariffs on gold in the States are extremely unlikely given that it is a reserve asset, risk managers are taking no chances and moving metal into the States," said StoneX analyst Rhona O'Connell, Reuters reported.

"The element that is most affected by this is the exchange of futures for physical (EFP), but it is undoubtedly contributing to support in spot."

London bullion market players are racing to borrow gold from central banks, which store bullion in London, following a surge in gold deliveries to the US, two sources familiar with the matter said.

Even though Trump did not mention gold in his tariff plans, traders were worried about possible risks, leading to more gold being sent to New York.

Earlier this week, the White House said Trump plans to hit Mexico and Canada with steep tariffs on Saturday while also considering some on China.

Meanwhile, the Fed held interest rates steady on Wednesday. Chair Jerome Powell said there would be no rush to cut them again.

Investors now await the December US personal consumption expenditures (PCE) price index report on Friday.

Spot silver was up 0.7% at $31.02 per ounce.

Silver, meanwhile, is seeing renewed strength relative to gold after the gold-silver ratio once again got rejected above 91, said Ole Hansen, head of commodity strategy at Saxo Bank.

"Market is pricing in a higher risk of silver import tariffs compared to gold."

Platinum added 1.4% to $959.73, and palladium gained 2% to $981.51.



47 Ships Rerouted to Egypt's Suez Canal this Month, Chairman Says

FILED - 17 November 2019, Egypt, Ismailia: A container ship sails through the Suez Canal. Photo: Gehad Hamdy/dpa
FILED - 17 November 2019, Egypt, Ismailia: A container ship sails through the Suez Canal. Photo: Gehad Hamdy/dpa
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47 Ships Rerouted to Egypt's Suez Canal this Month, Chairman Says

FILED - 17 November 2019, Egypt, Ismailia: A container ship sails through the Suez Canal. Photo: Gehad Hamdy/dpa
FILED - 17 November 2019, Egypt, Ismailia: A container ship sails through the Suez Canal. Photo: Gehad Hamdy/dpa

Egypt's Suez Canal Authority chairman Osama Rabei said on Sunday that 47 ships have been rerouted from Cape of Good Hope to Suez Canal since the start of February.

Earlier this month, Rabie said that the Red Sea crisis did not create a sustainable alternative route to the canal and that there were positive indicators for the return of stability in the region, Reuters reported.

Iran-backed Houthi militants have attacked vessels in the Red Sea area since November 2023, disrupting global shipping by forcing vessels to avoid the nearby Suez Canal and reroute trade around Africa, raising shipping costs.

Egyptian President Abdel Fattah al-Sisi said in December the disruption cost Egypt around $7 billion in less revenue from the Suez Canal in 2024.