Gold resumes gains near record highs
Gold prices rose in European trade on Tuesday, resuming gains and approaching record highs as haven demand spikes.
The precious metal is holding its ground above the historic $3200 barrier amid uncertainty about US President Donald Trump’s tariff plans.
The Price
Gold prices rose 0.7% today to $3232 an ounce, with a session-low at $3210.
On Monday, gold lost 0.85% on profit-taking, the first such loss in four sessions, moving away from a record high at $3245.
Trade Developments
US President Donald Trump exempted cell phones, computers, chips, and other electronics from his reciprocal tariffs, removing the pressure on tech companies.
Federal Reserve official Christopher Waller wanted that recession risks outweigh inflation risks, and if current average 25% tariffs continued, inflation could hit a peak of 5%.
Atlanta Fed President Raphael Bostic also warned from ongoing uncertainty due to tariffs and other policies that could push the economy into recession.
According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in May stood at 17%.
The odds of such a cut in June stood at a much bigger 73%.
SPDR
Gold holdings at the SPDR Gold Trust remained unchanged yesterday at 953.15 tons, the highest since September 20, 2022.
Kiwi rises to 2025 highs amid positive sentiment
The New Zealand dollar rose in Asian trade on Tuesday against a basket of major rivals, heading for the fifth straight profit in a row against the US dollar and scaling November 2024 highs as the risk appetite improves worldwide.
US President Donald Trump exempted cell phones, computers, chips, and other electronics from his reciprocal tariffs, removing the pressure on tech companies.
The gains are also boosted by the reducing odds of a RBNZ rate cut in May as the New Zealand central bank prefers to take more time to analyze local and international developments.
The Price
The NZD/USD price rose 0.75% today to $0.5915, the highest since November 2024, with a session-low at $0.5861.
The pair closed up 0.9% on Monday, the fourth profit in a row, and the longest such streak of gains since early March following strong Chinese exports data.
Positive Sentiment
Financial markets opened the week with a positive stance after Trump’s new tariff exemptions for a variety of tech products.
It comes after he suspended his reciprocal tariffs on most countries for 90 days to give time for negotiations.
New Zealand Rates
The odds of a New Zealand 0.25% interest rate cut in May tumbled from 90% to 60%, with investors now waiting for inflation data later this week to gather more clues.
Oil prices boosted by Chinese demand data
Oil prices rose on Monday after positive Chinese data showed increasing demand last month.
Official data showed China’s crude oil imports rose 5% last month y/y to 51.41 million tons, equivalent to 12.1 million bpd, the highest since August 2023.
In comparison, China imported 10.38 million bpd on average in the first two months of the year, with the increase in imports last month boosted by Iranian, Russian imports.
OPEC reduced its outlook for global oil demand growth this year to 1.3 million bpd from 1.45 million bpd, and next year to 1.28 million bpd from 1.43 million bpd.
On trading, Brent June futures rose 0.2%, or 12 cents to $64.88 a barrel.
US crude futures due in May added 3 cents to $61.53 a barrel.
Ethereum climbs as risk appetite rebounds
Most cryptocurrencies rose on Monday as the risk appetite improved in the markets following new remarks by US President Donald Trump.
Concerns about the trade war receded after Trump exempted some tech imports from reciprocal tariffs.
In yet another escalation to the devastating US-China trade war, Beijing raised tariffs on all US goods from 84% to 125%.
It’s in response to US President Donald Trump’s 145% tariffs on US goods, which were confirmed yesterday.
The latest escalation comes after a long series of reciprocal measures between both sides starting January 2018, when the US imposed tariffs on Chinese goods and accused China of unfair trade practices.
China asserted it will “fight till the end” and warned Trump that any escalation will be faced with similar responses.
China said it won’t respond to any more tariff hikes from the US as it would be meaningless after this point, with American products already losing their viability in the Chinese market.
The corporate earnings season officially started for the first quarter of the year, starting with banking results.
Ethereum
On trading, ethereum rose 1.9% on Coinmarketcap as of 20:12 GMT to $1635.