Gold at record high as markets brace for Trump tariffs – business live
Introduction: Gold at new record high amid tariff worries
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
The markets are clad in a fog of uncertainty as investors around the world brace for Donald Trump to unveil country-specific tariffs tomorrow.
Trump’s ‘Liberation Day’ is already being dubbed ‘Demolition Day’ by some City wags, and traders really aren’t sure quite what to expect. That uncertainty drove a sell-off across European and Asia-Pacific markets yesterday, as market participants tried to cut risk.
This morning, gold has hit a new all-time high, touching $3,148.8 per ounce, amid a nervous dash for safe assets.
Last night, Trump pledged he would be “very kind” to trading partners when he unveils further tariffs this week, which he suggested would come “tomorrow night or probably Wednesday.”
He said:
“We’re going to be very nice, relatively speaking, we’re going to be very kind.”
White House Press Secretary Karoline Leavitt told reporters yesterday that Trump will announce his reciprocal tariff plans on Wednesday during an event in the White House Rose Garden,
Leavitt declared:
“The president will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off our country for decade.
It’s time for reciprocity and it’s time for a president to take historic change to do what’s right for the American people.”
But many investors fear that whacking new trade levies on imports into the US, and risking retaliatory tariffs from America’s trading partners, will backfire on the economy.
As Tom Stevenson, Investment Director at Fidelity International, puts it:
“Investors are starting to price in the growing likelihood of a painful cocktail of recession coupled with stubbornly high inflation. What has surprised many is the extent to which the President seems prepared to take a hit to the economic prospects of the US as well as the rest of the world.
“The nature of protectionism is that it hits American businesses and consumers just as hard as those in the US’s rivals. Tariffs raise prices and curtail confidence and growth for the country levying them as much as for the apparent targets.
After an early sell-off yesterday, Wall Street rebounded off its lows to close a little higher, but still posted its worst quarter since 2022. The S&P 500 fell around 4.6% in the first quarter of this year, suggesting that some of the trade war damage has been priced in.
But quite possibly not all – if Trump does disrupt global trade badly.
Stephen Innes, managing partner at SPI Asset Management says tomorrow’s announcement will set the tone for the next phase of global market reaction. He explains”:
Meanwhile, the Trump administration appears to be in its own state of flux—scrambling behind the scenes to finalize tomorrow’s “Liberation Day” tariff rollout.
The internal tug-of-war? Whether to apply bespoke tariff rates for each trading partner (a softer, more nuanced approach) or unleash a campaign-era sledgehammer with broad-based across-the-board tariffs.
The agenda
-
8am BST: Kantar survey of UK grocery inflation
-
10am BST: Eurozone inflation report for March
-
10am BST: Treasury committee to quiz Office for Budget Responsibility about the spring statement
-
2pm BST: Treasury committee to quiz top economists about the spring statement
Key events
Gold’s gains today come hot on the heels of its strongest quarter since 1986.
Bullion rose by 19.3% in the first quarter of this year, driven by fears that trade wars would hurt growth and drive up inflation.
David Meger, director of metals trading at High Ridge Futures, explained:
“The ongoing uncertainty regarding tariffs has affected equity markets and brought another round of safe-haven buying into the gold market.
“There are certain technical areas of resistance along the way that could cause a little profit-taking or pullback. But the ongoing bullish trend remains in place. The fundamental underpinnings remain in place.”
Some Republican senators have been speaking out against Trump’s tariffs on Canada and are considering signing on their support for a resolution blocking them, CNN reported.
Senator Susan Collins warned that tariffs on Canada would be particularly harmful to Maine and that she intended to vote for a resolution aimed at blocking tariffs against Canadian goods.
Republican Senator Thom Tillis also said he was considering backing the resolution, adding:
“We need to fight battles with our foes first and then try to figure out any inequalities with our friends second.”
Introduction: Gold at new record high amid tariff worries
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
The markets are clad in a fog of uncertainty as investors around the world brace for Donald Trump to unveil country-specific tariffs tomorrow.
Trump’s ‘Liberation Day’ is already being dubbed ‘Demolition Day’ by some City wags, and traders really aren’t sure quite what to expect. That uncertainty drove a sell-off across European and Asia-Pacific markets yesterday, as market participants tried to cut risk.
This morning, gold has hit a new all-time high, touching $3,148.8 per ounce, amid a nervous dash for safe assets.
Last night, Trump pledged he would be “very kind” to trading partners when he unveils further tariffs this week, which he suggested would come “tomorrow night or probably Wednesday.”
He said:
“We’re going to be very nice, relatively speaking, we’re going to be very kind.”
White House Press Secretary Karoline Leavitt told reporters yesterday that Trump will announce his reciprocal tariff plans on Wednesday during an event in the White House Rose Garden,
Leavitt declared:
“The president will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off our country for decade.
It’s time for reciprocity and it’s time for a president to take historic change to do what’s right for the American people.”
But many investors fear that whacking new trade levies on imports into the US, and risking retaliatory tariffs from America’s trading partners, will backfire on the economy.
As Tom Stevenson, Investment Director at Fidelity International, puts it:
“Investors are starting to price in the growing likelihood of a painful cocktail of recession coupled with stubbornly high inflation. What has surprised many is the extent to which the President seems prepared to take a hit to the economic prospects of the US as well as the rest of the world.
“The nature of protectionism is that it hits American businesses and consumers just as hard as those in the US’s rivals. Tariffs raise prices and curtail confidence and growth for the country levying them as much as for the apparent targets.
After an early sell-off yesterday, Wall Street rebounded off its lows to close a little higher, but still posted its worst quarter since 2022. The S&P 500 fell around 4.6% in the first quarter of this year, suggesting that some of the trade war damage has been priced in.
But quite possibly not all – if Trump does disrupt global trade badly.
Stephen Innes, managing partner at SPI Asset Management says tomorrow’s announcement will set the tone for the next phase of global market reaction. He explains”:
Meanwhile, the Trump administration appears to be in its own state of flux—scrambling behind the scenes to finalize tomorrow’s “Liberation Day” tariff rollout.
The internal tug-of-war? Whether to apply bespoke tariff rates for each trading partner (a softer, more nuanced approach) or unleash a campaign-era sledgehammer with broad-based across-the-board tariffs.
The agenda
-
8am BST: Kantar survey of UK grocery inflation
-
10am BST: Eurozone inflation report for March
-
10am BST: Treasury committee to quiz Office for Budget Responsibility about the spring statement
-
2pm BST: Treasury committee to quiz top economists about the spring statement
