Daily Gold Commentary by Mr. Navneet Damani, Head - Commodities Research, Wealth Management at Motilal Oswal Financial Services
Below the Daily Gold Commentary by Mr. Navneet Damani, Head – Commodities Research, Wealth Management at Motilal Oswal Financial Services
Gold prices soared to a record high, as investors flocked to the safe-haven asset after U.S. President Donald Trump imposed new 25% tariffs on steel and aluminium imports, fueling concerns over a potential trade war and inflation. President Trump’s latest tariffs threats have ignited another gold rush, propelling safe haven asset to new highs, helping prices sail smoothly past $2900 on COMEX. Trump substantially raised tariffs on steel and aluminum imports on Monday to a flat 25% "without exceptions or exemptions" in a move to aid the struggling industries but which increases the risk of a multi-front trade war. Gold has hit an eighth record-high level so far this year, driven by Trump's tariff threats, which have fueled global growth uncertainties, trade war concerns, and inflationary pressure. With President Trump’s interest to take over Gaza with an intention to develop it -ceasefire deal between Israel and Hamas looks to slightly dicey. Meanwhile, Supply panic continue to build in as another 900K/oz was deposited in COMEX vaults signaling the squeeze still continues. Dollar index has also inched higher after hitting recent low of ~107.40 to currently hovering around 108.50 capping some gains on higher side. On data front, market participants will keep an eye on US Retail sales, Industrial production and inflation scheduled later this week; focus will also be on Governor Powell ‘s testimony
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