Gold costs dip as Trump tariff risk helps greenback

Investing.com– Gold costs fell on Monday, pressured by a stronger greenback after U.S. President-elect Donald Trump threatened to impose steep tariffs on the BRICS group of nations to dissuade them from searching for options to the greenback.

Protected haven demand for gold was additionally stymied by indicators that the Israel-Hezbollah ceasefire seemed to be holding, though heightened tensions between Russia and Ukraine stored some haven shopping for in play. 

Spot gold fell 0.7% to $2,636.06 an oz, whereas gold futures expiring in February fell 0.8% to $2,658.84 an oz by 1:23 p.m. ET (1823 GMT). 

Trump tariff risk boosts greenback, pressures gold

Trump threatened to impose “100% tariffs” on the BRICS bloc, warning them towards looking for options to the greenback.

His risk dented the currencies of the bloc and pushed up the greenback, as merchants feared much more protectionist insurance policies from the U.S. below Trump. The president-elect had final week threatened extra tariffs on China, Canada, and Mexico- a transfer that might reignite a world commerce battle. 

Trump’s risk buoyed the greenback, which in flip weighed on metallic markets throughout the board. Uncertainty over larger long-term inflation below Trump- which may hold rates of interest elevated- additionally rattled metallic markets. 

Different treasured metals retreated. Platinum futures fell 0.5% to $950 an oz, whereas silver futures fell 0.7% to $30.883 an oz. 

Copper dips as tariffs, robust greenback offset China PMIs

Amongst industrial metals, copper costs fell on Monday as fears of extra U.S. tariffs and a stronger greenback largely offset optimistic indicators from prime copper importer China. 

Benchmark copper futures on the London Steel Trade fell 0.2% to $9,000.50 a ton, whereas March copper futures fell 0.2% to $4.1318 a pound. 

China- the world’s largest copper importer- noticed its manufacturing exercise rise greater than anticipated in November, authorities and non-public buying managers index knowledge confirmed.

The studying got here as Beijing rolled out a flurry of aggressive stimulus measures since late-September, geared toward shoring up financial development.

Whereas the measures seemed to be bearing some fruit, markets feared extra financial headwinds from a commerce battle with the U.S.

Merchants are additionally holding out for extra stimulus measures from two key political conferences set to happen later in December.

(Ambar Warrick contributed to this text)