Quote on gold Commentary by Mr. Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services Ltd
Below the Quote on gold Commentary by Mr. Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services Ltd
Gold hit a record high, as nervous investors rushed towards safe-haven assets after U.S. President Donald Trump announced more aggressive-than-anticipated tariffs against major trading partners, widening the global trade war. President Trump said in his statement that he would impose a 10% baseline tariff on all imports to the U.S. and higher duties on dozens of other countries, including some of the United States' biggest trading partners, taking effect from April 5th; deepening a trade war that has rattled global markets and bewildered U.S. allies. Trump's administration also confirmed that his 25% global car and truck tariffs will take effect as scheduled on April 3 and that duties on automotive parts imports will be launched on May 3. This means, total tariffs as high as 20% on EU and 24% on Japan would take effect on April 9. US tariffs on China, will rise to 54% after trump imposed a further 34% duty on top of 20% levies he placed on Asian nation earlier this year. Meanwhile, U.S. private payrolls increased more than expected in March 155K v/s 84K, increasing market’s confidence in the US labor market. Imposition on china has increased pressure on industrial metals including Silver and Energy segment as well. Amidst the tariff updates, Dollar Index and US 10Y Yield has also slid further. A cautious approach is advised as we could receive comments from other countries and impact of tariffs could increase volatility in market
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