Gold rises and oil declines after the Trump customs duties suspended economy

Gold prices rose by more than 1% today, Thursday, with investors resorting to safe haven after US President Donald Trump’s decision to increase customs duties on China, the largest consumer of minerals in the world, despite his decision to reduce the fees from the rest of the countries.

• Gold rose in instant transactions 1.15% to $ 3119.18 an ounce.
• US gold futures increased 1.8%, registering $ 3143.60.

Trump decided in a sudden procedure yesterday, Wednesday, to suspend the customs duties he announced last week, but he increased the pressure on China.

Trump said that customs duties on imports from China will increase from 104% to 125%, in an escalation to a risky confrontation between the two largest economies in the world.

The two countries exchanged the imposition of fees more than once during the past days.

“If we enter a slow growth period, which is our primary assumption, we believe that interest rates will eventually turn towards a decrease, which will push gold towards the rise, due to the continued inflation concerns during most of the year due to the effects of customs duties,” said Edward Mayer.

“In the end, we expect gold to reach $ 3,200 by the end of the month, if not before,” he added.

Gold, which is a hedge tool against universal uncertainty and inflation, increased by more than 18% in 2025, driven by:

• Trump plans for customs tariffs
• Expectations for reducing interest rates by the Federal Reserve (US Central Bank)
• Geopolitical tensions in the Middle East and Ukraine.
• Strong purchase by central banks.
• Increased investment in the gold -backed investment funds.

The minutes of the Federal Reserve meeting showed that policy makers were almost unanimously at their meeting last month that the American economy faces the risk of slowing growth and accelerating inflation at the same time, and some of them indicated that the bank may face “difficult differentials” in the future.

The markets expect 72% to reduce the interest rate in the United States next June.

Gold, which does not generate return to prosperity in the low interest rate environment.

Investors are currently looking forward to consumer price index data in the United States, to be released later today, Thursday.

As for other precious metals:

• Silver settled in instant transactions at $ 31 an ounce.
• Platinum rose 0.19%, recording 936.78 dollars.
• Palladium fell 1.3% to 918.53 dollars.

Safe haven currencies

On the currency level, dealers returned to accept safe haven currencies such as the yen and the Swiss franc after Trump had attracted his commercial war against China even with his sudden suspension of the application of customs duties for a period of 90 days to many other countries.

The Australian and New Zealand dollars, who are sensitive to risks and affected by China’s fluctuations due to close trade relations, dispelled some of their strong altitudes that they achieved on Wednesday, but they returned again with expectations that the wave of ascension reached the stocks in Europe.

• The dollar fell 1.3% to 145.71 in the latest transactions.
• The dollar also decreased 2% to 0.8406 Swiss francs.
• The euro rose 1% to $ 1.106.
• And the dollar rose Australian 0.54% to 0.6183 USD, after it decreased earlier for the same, and jumped yesterday 3.3% after he recorded earlier in the lowest level in 5 years at 0.5910 USD.
• The Chinese yuan fell to 7,3518 against the dollar in early local transactions, which is the weakest level since December 26, 2007, but in the latest trading today 7.3297.

Trump kept 10% basic customs duties on most countries when he surprised the markets by hanging a 90 -day counter -fee after less than 24 hours of entering into force.

But at the same time, China singled out additional fees, raising the rate of customs duties to 125% on Chinese imports with an immediate impact, after Beijing responded to previous American fees by imposing a fee of 84%.

“Regardless of the developments of the next ninety days, the United States’s international reputation is fading … increasingly, the exaggerations of the dollar evaluation against some currencies appear unjustified in the medium term,” said analysts from the Bank of AN.

US Treasury Secretary Scott Besent said on Wednesday that the retreat from comprehensive customs duties is the plan from the beginning to push countries to sit at the negotiating table.

“It seems that the American president has retracted his position when he found himself in front of the possibilities of stagnation, a violent political reaction and a stock market that is dominated by landing and early indicators on a financial crisis … There is now a decline in the confidence of customers of the US government,” said Kyle Roda.

He continued, “Even if President Trump concludes deals with commercial partners, harm has caused the American markets and economy to take time to recover.”

Oil continues to decline

Oil prices fell on Thursday as Trump escalated his trade war with China.

• Brent crude futures fell 2.34% to $ 63.95 a barrel in the latest transactions.
• US West Texas Intermediate crude futures fell 2.41% to $ 60.85.

After suspending the customs duties application to most countries, crude contracts recorded 4% at the settlement yesterday, Wednesday, after they fell by 7% during the session.

Analysts at the “ING” for initial commodities said in a research note today that the increase in US customs duties on China creates a space for a lot of mystery in the markets.

They added, “This ambiguity is still likely to pressure global growth, which is clearly concerned about oil demand.”