Gold Hits New Records as Trump Hits Canada, Threatens BRICS, EFP Hits $50
Friday, 1/31/2025 15:23
GOLD PRICES set new all-time highs against all major currencies except the Japanese Yen on Friday as New York futures raced further ahead of London spot prices, driving the EFP contract for changing a futures position into physical bullion sharply higher, after US President Trump vowed to impose trade tariffs on neighbours Mexico and Canada starting tomorrow, with no word on whether precious metals or any other commodities will be included.
Dealers selling EFPs – an 'exchange for physical' which enables holders of US Comex futures to switch into bullion already stored in New York – were today asking as much as $50 per Troy ounce for April gold contracts.
The most since this month's pre-inauguration peak above $60, that still equalled less than 1/5th of the genuine price impact which the 'universal' 10% tariff mooted by Trump for all imports into the US would have on new gold shipments at today's fresh record bullion price above $2800.
"The idea that
the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER," Trump said separately on his TruthSocial platform, threatening the political alliance of Brazil, Russia, India, China, South Africa and 5 other 'emerging market' nations with 100% trade tariffs if they dare to "replace the mighty US Dollar."
This directly contradicts comments from Trump's running mate and now Vice President J.D.Vance that the Dollar's reserve status among central banks
should be weakened along with its exchange-rate value in the hope of making imports more costly and boosting US manufacturing.
"Any Country that tries should say hello to Tariffs, and
goodbye to America!" Trump says.
The Canadian Dollar last night spiked towards its lower US Dollar exchange rate since 2003 and the Mexican Peso fell towards last week's 2.5-year lows after Trump declared that 25% trade tariffs on all imports from the USA's
former Nafta and now USMCA partners will start tomorrow, Saturday 1st Feb.
"We may or may not exclude oil," Trump told reporters in the Oval Office, repeating his demand that Mexico and Canada stop the flow of illegal migrants and drugs into the world's largest economy.
"It depends on what their price is.
We don't need the products they have."
The gold price in US Dollars today hit $2809 per Troy ounce, up 1.1% from last Friday's 3pm benchmark auction in London.
The UK Pound gold price hit £2267, up 1.5% for the week, and the Euro price of gold broke above €2700 per Troy ounce, adding 2.3% from last weekend at its own new record.
Anonymous claims quoted by the
Financial Times that
London is "running out of gold" as US importers rush to beat any tariffs meanwhile continued to gain press and social media coverage while the gap between New York futures and London spot bullion prices widened further, reaching $40 per Troy ounce for the CME derivatives exchange's most-active Comex gold contract.
The cost of borrowing gold in London meantime jumped to 4.5% per annum on a 1-month loan, fully 1.2 percentage points above Thursday's jump, according to indicative data from Reuters.
Silver lease rates eased in contrast, edging down to 2.5% per annum for 1-month loans, but the EFP in New York rose above $1 to exchange a Comex March future for physical bullion.
London silver fixed at midday with its highest Friday benchmark since the start of November – eve of Trump's 2nd election victory – rising above $30.60 per Troy ounce.
The CME's March silver futures contract meantime peaked at $32.70.
Over the past 5 years, the USA has imported 215 tonnes of gold – some 2/5ths of that during the Covid pandemic's NYLON dislocation and price surge – plus 11,472 tonnes of silver.
Overall,
the USA's trade deficit in goods set a new monthly record in December as importers of commodities and manufactured products rushed to build inventory ahead of the new Republican administration taking power.
Email us
