Gold prices hit 11-week high on safe-haven demand | Commodities

Investing.com– Gold costs edged greater to an 11-week high in Asian trading on Wednesday, extending good points for a third consecutive session as safe-haven demand grew amid U.S. tariff fears below President Donald Trump’s administration.

rose 0.2% to $2,749.29 per ounce, its highest stage since early November, whereas expiring in February gained 0.2% to $2,766.57 an ounce by 01:45 ET (06:45 GMT).

The yellow steel was set for a third straight day of good points, as merchants remained cautious whereas attempting to gauge Trump’s insurance policies, that are anticipated to raise inflation. Gold is seen as a hedge in opposition to inflation.

The greenback had fallen sharply on Monday after Trump prevented particulars on the imposition of U.S. trade tariffs, additional supporting gold costs. 

Bullion supported by ‘safe-haven’ demand amid international uncertainity

The dear steel, historically seen as a safe-haven asset, has maintained its price above a one-month peak roughly since final week. This displays that markets are bracing for international uncertainty as Trump’s coverage bulletins and tariff declarations are anticipated to affect market dynamics. 

Trump mentioned on Tuesday he’s contemplating imposing 10% tariffs on Chinese language imports from February 1, and in addition vowed to hit the European Union with tariffs.

The elevated tariffs will possible end in lowered trade imbalances and better inflation, that are each seen as dollar-positive.

A stronger greenback usually drives gold costs decrease as a result of it makes the steel costlier for consumers utilizing different currencies.

The rose 0.2% in Asian trade on Wednesday, after closing largely unchanged a day earlier. It fell more than 1% on Monday as Trump prevented tariff bulletins.

Merchants are intently monitoring Trump’s strikes to evaluate their influence on gold’s trajectory.

Different treasured metals had been muted on Wednesday. had been unchanged at $968.45 an ounce, whereas had been regular at $31.51 an ounce.

Copper costs drop additional on tariff fears

Copper costs fell, persevering with their subdued efficiency after Trump’s inauguration, as a mixture of anticipated U.S. tariffs, and prospects of a stronger greenback, weighed on the crimson steel.

In periods of escalating tariffs and trade tensions, copper costs have traditionally declined as a consequence of lowered demand from China, the world’s largest copper client.

Benchmark  on the London Metallic Alternate fell 0.6% to $9,232.50 a ton, whereas February  declined 0.9% to $4.3015 a pound.