WASHINGTON (dpa-AFX) - Gold prices edged slightly higher on Tuesday, reaching a new record closing high, as investors assessed increasing tariff uncertainty as well as the escalating U.S.-Iran conflict.
Front Month Comex Gold for January delivery crept up by 20 cents (or 0.004%) to $5079.90 per troy ounce.
Notably, this is a fresh record closing high for gold prices, which have increased for six consecutive sessions.
Front Month Comex Silver for January delivery plunged by $9.5570 (or 8.30%) to $105.523 per troy ounce.
Accusing South Korean lawmakers of being slow to approve a bilateral deal reached last year, U.S. President Donald Trump said he is increasing tariffs on South Korean lumber, automobiles, and pharmaceuticals and raising all other reciprocal tariffs to 25% from 15%.
Last October, South Korea committed to invest $350 billion in the U.S. The country exported goods worth nearly $123 billion to the U.S. last year.
On Saturday, Trump threatened Canada with a new 100% tariff if the nation commits to a free trade deal with China, prompting Canada's Prime Minister Mark Carney to announce that he was not considering any free-trade deal with China.
Prior to that, Trump threatened around eight European nations with tariffs if they opposed his attempts to take control of Greenland from Denmark, although he later backed off.
After Trump made tariffs a central part of his agenda in his second-term, investors have been confused by his flip-flops on tariffs, making the global trade more volatile.
Separately, the legality of Trump's authority to impose tariffs has been legally challenged, with the U.S. Supreme Court expected to announce its ruling by next month.
Geopolitical tension in the Middle East is intensifying day by day.
Accusing Iran of human rights violations after reports surfaced that the ruling authorities mercilessly executed thousands of civilians who protested against the clerical authority's inability to handle the national economy, Trump's administration began building up its military forces closer to Iran.
After deploying the aircraft carrier vessel USS Abraham Lincoln along with three warships to Iran, Trump even commented that Iran should look for 'a new leadership,' hinting at his preference for regime change.
On its part, Iran warned the U.S. of a 'regret-inducing response.' Iran also unveiled a giant billboard which read, 'Sow the wind, reap the whirlwind,' seemingly a threat to the U.S.
In addition, Lebanon's Hezbollah and Yemen's Houthi rebel groups have committed to defend Iran. Houthis threatened to attack ships transiting via the Red Sea corridor.
A full-blown U.S-Iran war could deteriorate the global economy, which is already facing severe headwinds.
In its effort to end the Russia-Ukraine war, U.S. negotiators sat with high-level officials from Russia and Ukraine last weekend and the meeting is slated to continue in the coming days.
Ukraine's President Volodymyr Zelenskyy stated that key issues need to be prepared before the next round of talks. Meanwhile, both countries have not ceased their strikes on each other.
The Federal Open Market Committee of the US Federal Reserve is meeting today and tomorrow. At the conclusion, the Fed will announce its decision on interest rates.
Investors anticipate that policymakers will leave interest rates unchanged and suggest they need require time to assess the economy further.
In the U.S., the Conference Board said its consumer confidence index tumbled by 9.7 points to 84.5 in January, lower than the Covid-19 pandemic levels.
U.S. Automatic Data Processing research data revealed that private employers added an average of 7,750 jobs per week in the four weeks ending January 3, little changed from an average gain of 8,000 in the previous period.
The U.S. dollar index was last seen trading at 96.16, down by 0.88 (or 0.91%) today.
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