Gold prices touched an all time-high on Wednesday, underpinned by safe-haven demand after China responded to U.S. tariffs, which were initially imposed by President Donald Trump on the world’s largest consumer of gold.
FUNDAMENTALS
* Spot gold was up 0.2% at $2,847.33 per ounce, as of 0044 GMT, after hitting a record high of $2,848.94 earlier in the session. U.S. gold futures steadied at $2,876.10.
* China swiftly hit back with tariffs on U.S. imports, intensifying the trade war between the world’s two largest economies, even as Trump granted temporary reprieves to Mexico and Canada.
* Trump said on Tuesday he sees no urgency in speaking with Chinese President Xi Jinping to ease a growing trade war, sparked by his sweeping 10% tariffs on all Chinese imports. * The market views the tariffs as inflationary, potentially boosting safe-haven demand for bullion, which is traditionally seen as a hedge against both rising prices and geopolitical turmoil.
* Data showed U.S. job openings in December fell to 7.6 million, falling short of the consensus estimate of 8 million, indicating potential economic slowdown.
* Key economic data on investors’ radar this week includes the U.S. employment report on Friday and the ADP employment report, due later in the day, both of which are expected to offer crucial insights into the economy’s overall strength.
* San Francisco Fed President Mary Daly said that the Federal Reserve plans to take its time in evaluating its next interest rate move, carefully assessing incoming economic data and the effects of tariff, immigration, and other policy shifts under the Trump administration.
* Spot silver added 0.2% to $32.15 per ounce, platinum edged 0.3% higher to $966.50, and palladium was flat at $990.75. DATA/EVENTS (GMT) 0030 Japan JibunBK Comp Op Final SA, JibunBK SVC PMI Final SA Jan 0145 China Caixin Services PMI Jan 0850 France HCOB – Services PMI, HCOB Composite PMI Jan 0855 Germany HCOB Services PMI, HCOB Composite Final PMI Jan 0900 EU HCOB Services Final PMI, HCOB – Composite Final PMI Jan 0930 UK S&P GLOBAL PMI: COMPOSITE – OUTPUT Jan 1330 US International Trade $ Dec 1445 US S&P Global Comp Final PMI, S&P Global Svcs PMI Final Jan 1500 US ISM N-Mfg PMI Jan