Gold, silver prices rise on Tuesday

Gold rose on Tuesday as geopolitical uncertainty underpinned safe-haven demand, while silver surged by 8 per cent to hover near all-time highs. Spot gold climbed 1.6 per cent to $5,092.70 per ounce at 0710 GMT, after reaching a record $5,110.50 on Monday, breaking through the $5,100 level for the first time in the previous session. US gold futures for February delivery edged up 0.1 per cent to $5,088.40 per ounce.

Amid escalating trade tensions, US President Donald Trump said on Monday he would raise tariffs on South Korean auto, lumber, and pharmaceutical imports to 25 per cent, criticising Seoul for failing to finalise a trade deal with Washington. This followed an earlier threat of tariffs on Canada, despite improving relations with China after Canadian Prime Minister Mark Carney’s visit earlier this month.

A looming US government shutdown and Trump’s erratic policymaking weighed on the dollar, making gold cheaper for overseas buyers. The Federal Reserve is expected to keep interest rates unchanged at its meeting later in the day, amid challenges posed by the Trump administration to central bank independence.

Spot silver jumped 6.1 per cent to $110.19 an ounce after hitting a record $117.69 on Monday and has risen by more than 50 per cent so far this year. Analysts at BMI, a unit of Fitch Solutions, said silver now appears expensive relative to gold, with the gold-to-silver ratio at a 14-year low. They added that speculative buying drove the latest rally and expect prices to ease in the coming months as supply tightness eases and industrial demand peaks amid a slowing Mainland Chinese economy.

Spot platinum fell 2.2 per cent to $2,697.45 per ounce after reaching a record $2,918.80 in the previous session, while palladium rose 1.1 per cent to $2,004.37.

Attribution: Reuters