Oil prices rise, gold hits a historic high! What happened?
The spot gold price once rose to USD 2,799.65 per ounce, breaking the historical peak set in October last year. Trump announced a 25% tariff on imports from Canada and Mexico starting February 1, driving a surge in global market risk aversion
Due to the threat of tariffs from Trump, global market risk aversion surged on Thursday, with oil prices rising and gold reaching a historic high.
According to CCTV News, on January 30 local time, Trump announced that starting February 1, a 25% tariff would be imposed on imported goods from Canada and Mexico, and he would decide on the evening of January 30 whether to include oil in the list of goods subject to tariffs.
At the same time, he also threatened to impose tariffs on other regions, but did not specify the exact rates. This series of trade policy statements has raised market concerns that a trade war could suppress economic growth.
Driven by risk aversion, gold prices soared to a historic high. Spot gold prices rose 0.2% to $2,799.65 per ounce, breaking the historical peak set in October last year. Currently, gold prices have risen for the fifth consecutive week. In addition to concerns about the trade war, Trump's promises of tax cuts and immigration reform have also raised market worries about the deterioration of the U.S. fiscal situation and the resurgence of inflation, further pushing up gold prices.
The oil market is also affected by trade policies. Brent crude oil prices rose above $77, while West Texas Intermediate (WTI) prices approached $73.
The market is closely watching whether Trump will include oil in the tariff list. Canada exports about 4 million barrels of oil to the U.S. daily, while Mexico exports about 500,000 barrels. If oil is included in the tariff scope, it could significantly impact U.S. Midwest refineries.
Risk aversion also drove the dollar to jump, with the Mexican peso plummeting 1.1% and the Canadian dollar falling 1.2%. The Bloomberg Dollar Index erased earlier losses, rising 0.2%.
In response to the U.S. tariff threat, Canada and Mexico have indicated they are prepared to take countermeasures. According to informed sources, Canada has drafted a list of U.S. products worth about $105 billion, including steel. Canadian Prime Minister Justin Trudeau is also considering more aggressive options, such as imposing export taxes on strategic goods like oil