Photographer: Akos Stiller\/Bloomberg <\/p>\n
(Bloomberg) — Gold rose, holding above $5,000 an ounce for a second day, as a weak dollar helped to extend a rally fueled by geopolitical risks and investor flight from sovereign bonds and currencies.<\/p>\n
Bullion jumped as much as 1.1% early on Tuesday, its seventh straight day of gains. A gauge of the dollar fell to the lowest in nearly four years during the previous session, making gold more affordable for most buyers, while US President Donald Trump threatened to hike tariffs on South Korean goods to 25%.<\/p>\n
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Gold\u2019s dramatic rally \u2013 the metal has more than doubled over the last two years \u2013 drives home bullion\u2019s historic role as a gauge of fear in markets. Fresh from its best annual performance since 1979, it\u2019s gained a further 17% so far this year due largely to the so-called debasement trade, whereby investors retreat from currencies and Treasuries. A massive selloff in the Japanese bond market is the latest example of investors rejecting heavy fiscal spending.<\/p>\n
In recent weeks, the Trump administration\u2019s actions \u2014 attacks on the independence of the Federal Reserve, threats to annex Greenland, military intervention in Venezuela \u2014 have also shaken markets. The US leader\u2019s warning to South Korea follows a threat to Canada over the weekend to impose 100% tariffs if Ottawa makes a trade deal with China.<\/p>\n
Options traders are betting gold will rally further as investors diversify from American assets. Implied volatility of Comex gold futures climbed to the highest since the peak of the Covid-19 pandemic in March 2020, while volatility on State Street\u2019s SPDR Gold Shares \u2014 the world\u2019s largest gold-backed exchange-traded fund \u2014 has also broken out higher.<\/p>\n
Looking ahead, investors will also be keeping a close tab on the Federal Reserve\u2019s actions on Wednesday, with the US central bank widely expected to halt its rate-cutting cycle as a steadier jobs market restores a degree of consensus after months of growing division.<\/p>\n
Gold rose 0.9% to $5,051.50 an ounce as of 8:15 a.m. in Singapore. Silver advanced 3.6% to $107.49 an ounce, having hit an all-time high above $117.71 in the previous session before retreating. Platinum and palladium climbed, while the Bloomberg Dollar Spot Index was flat after falling 0.4% in the previous session.<\/p>\n","protected":false},"excerpt":{"rendered":"Photographer: Akos Stiller\/Bloomberg (Bloomberg) — Gold rose, holding above $5,000 an ounce for a second day, as a…\n","protected":false},"author":2,"featured_media":259313,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[1877,54,4318,42,43,77035,40,38,41,39],"class_list":{"0":"post-259312","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headlines","8":"tag-bloomberg","9":"tag-donald-trump","10":"tag-federal-reserve","11":"tag-headlines","12":"tag-news","13":"tag-spdr-gold-shares","14":"tag-top-news","15":"tag-top-stories","16":"tag-topnews","17":"tag-topstories"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/259312","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=259312"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/259312\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/259313"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=259312"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=259312"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=259312"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}