Gold prices exceeded the level of $ 3,300 for the first time at a time when investors have increased the assets of safe haven after an order issued by US President Donald Trump to discuss the issue of imposing new customs duties on US imports of important minerals.
Gold rose in instant transactions 2.4% to $ 330.45 an ounce in the latest transactions, and reached a new peak at 3318 dollars an ounce earlier in the session.
US gold futures rose 2.5% to $ 3320.80, after $ 3343.20 an ounce.
Trump ordered yesterday, Tuesday, to discuss the possibility of imposing new customs duties on all the United States’ uniforms of important minerals in an attempt to confront China, in addition to reviews of drugs and chips, which increased the intensity of trade tension in the world.
No confidence
Mustafa Fahmy, CEO of Fortis Investment Company, says that gold continues to climb due to the lack of confidence that is increasing towards the American economy, which prompted investors to exit from American assets more and shelter with safe havens of precious metals and currencies.
In a comment to Al -Jazeera Net, Fahmy added that China’s great restrictions on many commodities – the most important of which are minerals (who acquire a large percentage of them) because of its lack of reaching the United States – is pressuring the American, technological and military industrial sector, which is reflected in the investor’s confidence in the vital American sectors.
He explained that gold has also increased to shelter from inflation due to the affected global supply chains with the spread of customs tariffs, which will raise the cost of living globally, adding that lack of confidence in the dollar, bonds and other assets that are described as safe havens that came due to political and economic risks.
Fahmy pointed out that there is a severe mood and fluctuation within the current American administration that raised investor concerns for the future, as the investor has not trustworthy what is coming in the United States, which is reflected in the global economy as a whole.
Unworthy
“The Trump’s commercial war does not show any indications of retreat after he ordered the president to consider important minerals, semi -conductors and medicines, which led to a new move towards the safe haven assets away from the stocks,” Reuters quoted Oil Hansen, Director of the Primary Commodities Strategy Department at Saksu Bank.
And “AN Z” raised today, Wednesday, its expectation of the price of gold by the end of the year to 3600 dollars and within 6 months to 3500 dollars.
The US Department of Commerce announced yesterday, Tuesday, to impose new requirements to grant export licenses to a number of types of artificial intelligence chips produced by Invidia to China, which led to a wave of sale in Asian stocks.
Amid the escalation of the customs duties imposed by Trump, China ordered its airlines not to receive any additional shipments of Boeing aircraft.
The dollar index (measures the performance of the US currency against 6 main currencies in the world) 0.67% against other major currencies, reduced the cost of gold for other currencies.
“We raise our expectations for the price of gold to $ 3500 an ounce, supported by the chaos witnessed by the world, as investors are looking for a safe haven, amid fears of recession, geopolitical tension and concerns related to financial debts and central banks diversifying their possessions away from the US dollar and the assets dependent on it,” Hansen said.
Gold is traditionally seen as a safe haven to invest in times of geopolitical and economic uncertainty.
The performance of other precious metals was as follows:
- The price of silver in instant transactions increased 2.96% to $ 32.94 an ounce.
- Platinum price increased 0.62% to 965.18 dollars.
- Palladium settled at $ 977.30.
