S&P 500, Dow, Nasdaq slip whereas GM, Ford hit as buyers weigh Trump’s tariff escalation

Gold (GC=F) hit new highs on Thursday as considerations of an escalating commerce conflict heightened.

Futures touched their seventeenth file of the yr simply north of $3,060 after President Trump’s auto tariff announcement on Wednesday stoked additional fears of a commerce conflict.

A transfer decrease within the US greenback (DX-Y.NYB) index additionally helped drive costs larger.

Earlier this week, analysts at Financial institution of America raised their worth goal on gold to $3,500 per ounce over the approaching 18 months if investments improve by 10% on account of extra shopping for from China, central banks, and continued purchases of bodily backed ETFs.

“Uncertainty round Trump Administration commerce insurance policies may proceed to push the USD decrease, additional supporting gold costs near-term,” BofA analysts wrote in a observe to purchasers. “In our view, a broad rebalancing of America’s twin deficits may very well be bullish gold too.”

The researchers cited gold’s surge above their $3,000 worth goal, as “a confluence of things, largely pushed by the Trump Administration’s financial coverage combine, have pushed buyers to extend their allocations to the yellow steel.”

Wall Road analysts have been taking part in catchup, as many $3000 requires gold got here early this yr. Macquarie Group just lately predicted the dear steel will contact $3,500 within the third quarter.

12 months up to now, gold is up 17%.