Gold rallies with Trump hinting on tariffs for China

LONDON (January 22) Gold’s price (XAU/USD) sees its upside move continue for this week after an already upbeat Tuesday when booking over 1.20% gains. The bullish momentum is fueled by new US President Donald Trump’s comments on tariffs. This time, a 10% levy on Chinese goods triggered the leg higher in Bullion. 

Meanwhile, investors remain focused on the implications of the Trump administration’s tariff and tax cut policies, which would likely erode the nation’s finances and lead to an inflation boom. That may limit the Federal Reserve’s (Fed) ability to keep easing monetary policy. Higher borrowing costs typically pose a headwind for Bullion regarding the correlation between the two assets. 

Daily digest market movers: Headline risk here to stay

• Zimbabwe Gold exports rose to $1.44 billion last year from $1.22 billion in 2023, according to data from the Reserve Bank of Zimbabwe, Bloomberg reports. 
• Silver futures briefly spiked after Trump’s comments on tariffs for China, Mexico and Canada. Mexico is the top miner of Silver, and it is unclear whether the tariffs would apply to imports of the metal, Reuters reports.
• US Treasuries cannot catch a breath and are on the backfoot again, with the US 10-year benchmark trading at 4.56%, not far from its yearly low near 4.528% seen on Tuesday. 

FXStreet