Trump's 'Golden Age' Starts with New CAD, GBP Gold Records
Tuesday, 1/21/2025 16:01
The PRICE of GOLD rose against a rallying US Dollar on Tuesday, recovering the last of November's US election drop and setting a new record for Canadian investors after Donald Trump said he's planning 25% trade tariffs on the USA's neighbors.
Gold also set a new record UK Pound price at London's 3pm benchmarking auction, fixing above £2228 per Troy ounce with a rise of 40.2% from this time last year.
"I think we'll do it February 1st," the returning US President said when asked about imposing import levies on all goods coming from Mexico and Canada in retaliation for "allowing fentanyl" and "vast numbers of people" to enter the US.
Gold priced in the Canadian Dollar today peaked above $3947 per Troy ounce as the Loonie spiked down to its lowest USD exchange rate since the global Covid Crisis struck in March 2020.
Gold in the US Dollar meantime fixed in London just below $2740 per Troy ounce – its highest price since 5th November, the
day of the US election, and $200 above the following week's 2-month low.
With no follow-up as yet from the new Trump White House on "universal" tariffs of 10% on imports from all other countries, the price of New York gold futures eased back relative to London bullion quotes, extending yesterday's drop from $40 to $20 in the NyLon premium towards a gap of just $12.
That still left
London gold lease rates for short-term loans higher than usual after bullion banks and industrial users rushed to move metal into New York ahead of yesterday's inauguration ceremony and the flood of executive orders Trump then signed.
"The golden age of America has just begun," Trump last night
told college football viewers on ESPN, vowing to make them "richer, safer and prouder than ever before" thanks to "passion, strength and exceptionalism.
"Through our power and might we will stop wars and we will lead the world to peace."
Like CAD prices, gold in Mexican Pesos also neared a record high Tuesday as the US southern neighbor's currency fell against the Dollar following Trump's trade tariff comments.
Euro prices following GBP gold higher, rising within €8 of last week's all-time EUR gold high at €2645.
UK and European equities, in contrast, cut their earlier gains towards zero as New York's stock market re-opened from MLK Day with a 0.4% rise on the S&P500 index.
Crude fell through $80 per barrel of Brent following Trump's promise to "drill, baby, drill" for US oil, while traders in copper – like gold – slashed the industrial metal's New York vs. London premium.
Having ended Friday 4.2% above the LME's 3-month copper price, CME Mar 25 futures today opened only 3.6% above London.
Amid fears of immediate 10% trade tariffs on Trump's inauguration, that figure was greater than 4.8% this time last week.
London spot silver today edged back to 2-session highs in Dollar terms, rallying to $30.74 per Troy ounce.
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