Gold, silver rise to near record highs on lingering safe-haven demand
The white metal has already surged 55% so far this year
[BENGALURU] Gold rose on Tuesday (Jan 27), after breaking through the US$5,100 mark for the first time in the previous session, as safe-haven demand lingered amid geopolitical uncertainty, while silver too hovered near all-time highs.
Spot gold climbed 1.1 per cent to US$5,068.05 per ounce, as at 9.21 am, after scaling a record US$5,110.50 the previous day.
US gold futures for February delivery added 0.4 per cent to US$5,063.0 per ounce.
Making things murkier geopolitically, US President Donald Trump said on Monday that he would raise tariffs on South Korean autos, lumber, and pharmaceuticals imports to 25 per cent, while criticising Seoul for failing to enact a trade deal with Washington.
This was after he threatened tariffs on Canada in the backdrop of a thawing relationship between the two countries, when Canada’s Prime Minister Mark Carney visited China earlier this month.
The rising yen took a toll on the US dollar, which languished near a four-month low as it was further pressured by problems of its own, including a looming US government shutdown and Trump’s erratic policymaking.
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A weaker US dollar makes greenback-priced gold less expensive for overseas buyers.
The US Federal Reserve is expected to hold interest rates steady at its monetary policy meeting beginning later on Tuesday, overshadowed by a Trump administration criminal investigation of US central bank chief Jerome Powell, an evolving effort to fire Fed governor Lisa Cook, and the coming nomination of a successor to take over from Powell in May.
Elsewhere, Zijin Gold will buy Canada’s Allied Gold for about C$5.5 billion (S$5.1 billion) in cash, as the Chinese miner ramps up its global expansion amid record high prices. Gold’s unprecedented rally has boosted miners’ margins and cash flows, fuelling consolidation.
Spot silver surged 6.3 per cent to US$110.39 an ounce, after hitting a record high of US$117.69 on Monday. The white metal has already surged 55 per cent so far this year.
Spot platinum lost 2.5 per cent to US$2,688.12 per ounce after hitting a record US$2,918.80 in the previous session, while palladium edged 0.1 per cent higher to US$1,980.50. REUTERS
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