Safe “investment port”
Gold price increases strongly – tariffs and worries about US debts
Trump proposes tariffs of 50 percent for EU goods. The trade conflict drives the price of the precious metal, regarded in crisis times as a “safe haven”. But there are other investor worries.
According to the tariffs of 50 percent proposed by US President Donald Trump, the gold price. The price of the precious metal, which was considered “safe port” in times of crisis, had already increased strongly about the high US debt.
After Trump’s customs announcement, the listing for a troy ounce (31.1 grams) in the afternoon trade on the stock exchange in London went up to $ 3,355. That was about $ 60 more than the day before. The gold price has now risen about $ 150 in the course of the trading week.
The gold price is again approaching the record high, which was reached at $ 3,500 in mid -April. In May, gold had dropped to $ 3,120 in the meantime, but was recently able to recover significantly. In the past twelve months, the course attracted more than 40 percent.
Sharp reaction on the financial market
In the trade dispute with the European Union, US President Donald Trump spoke out for punitive tariffs of 50 percent. This delivery for goods from the EU should come into force on June 1, the Republican wrote Truth Social on his online language tube. “There are no tariffs if the product is built or manufactured in the United States,” he added. On the ongoing negotiations, Trump wrote that she did not lead to anything.
The reaction was sharp on the financial market. The European stock markets temporarily dropped by around three percent. The euro came under pressure and other secure systems such as German government bonds were in demand. In the USA, too, price losses on the stock exchanges emerged at the opening.
Gold as a “safe harbor” in uncertain times
The gold price has almost doubled since the spring of 2020. The reasons for the increase include geopolitical tensions, the meantime high inflation and increased demand from central banks. For investors, gold is considered a so -called safe port in uncertain times.
Currently, concern is the strongest price driver in gold. During the week, a tax and expenditure law promoted by US President Donald Trump passed the House of Representatives. With the package, it is planned to permanently extend tax relief from Trump’s first term.
Worries about the US budget situation
If the US government’s fiscal package is implemented as planned, this will question the load-bearing capacity of the US debt, said raw material expert Thu Lan Nguyen from Commerzbank. The gold price is primarily a buoyancy due to worries about the US budget situation.
In addition, the Commerzbank expert referred to the recent downgrading of the US credit assessment by the Moody’s rating agency. This had withdrawn the top rating of the largest economy in the world a week ago. “All of this erodes the status of US state bonds as a safe haven, so that gold is increasingly in demand in uncertain times,” she said.
dpa
Source: Stern
