COMMODITY VIEW: Bullions have gained as geopolitical and tariff uncertainty

AHMEDABAD, 23 FEBRUARY: Bullions have gained as geopolitical and tariff uncertainty returned after US President announced he will immediately increase the global tariff rate from 10% to 15%, following what he called a flawed and “anti-American” United States Supreme Court decision. On the geopolitical front the NYT reports that President Donald Trump is considering a potential military strike against Iran in the coming days and could pursue a larger assault later if diplomacy fails to curb Tehrans nuclear ambitions. Potential targets under consideration include facilities linked to Iran’s Islamic Revolutionary Guard Corps, nuclear infrastructure and elements of its ballistic missile program. Comex Gold prices are up by a percent whereas, Silver prices are up by 3% as investors switch to safe haven asset classes.

Although geopolitical cues will be important for markets comments from FOMC member Waller regarding inflation and interest rates will also be crucial for commodity counters today.

COMMODITIES

Currencies offshore

Economic data & events:

Gold rises amid trade uncertainties

Gold climbed nearly 1.5% to around $5,150/oz, reaching its highest point in over three weeks as renewed tariff worries prompted a rush to safe-haven assets. On Saturday, US President Donald Trump announced plans to raise global tariffs from 10% to 15%, following the US Supreme Court’s rejection of his “reciprocal tariffs.” Trump confirmed the new duties would take effect immediately, although it remained unclear whether he had signed any official document. Meanwhile, Europe’s trade commissioner signaled on Sunday a proposal to halt ratification of the trade deal with the U.S, while India postponed negotiations aimed at finalizing an interim trade deal with Washington. Investors also faced growing fears of a potential US military strike on Iran, with nuclear talks at an impasse. However, negotiators are scheduled to meet again in Geneva on Thursday. MCX Gold April futures is likely to gain to Rs 160,000/10g as the trend is positive in the world markets too.

Silver rises as trade uncertainties return

Silver climbed 2% to trade above $86/oz, extending gains to a fourth session as renewed tariff tensions boosted demand for safe-haven assets. US President Donald Trump raised a global levy from 10% to 15% following the US Supreme Court’s rejection of his “reciprocal” tariffs. Meanwhile, Europe’s trade chief said Sunday he would seek to suspend ratification of a trade agreement with the US, while India delayed talks aimed at finalizing an interim deal with Washington. However, US Trade Representative Jamieson Greer stated that existing trade arrangements with key partners, including China, the EU, Japan and South Korea, would remain in effect. Investors also grappled with growing fears that the Trump administration could initiate military action against Iran amid stalled nuclear negotiations, although diplomats are set to reconvene in Geneva on Thursday. Silver and other metals may see higher trading volumes this week as Chinese markets reopen following a long holiday. MCX Silver March prices are likely to appreciate to Rs 265,000/kg amid a bullish trend in the international markets. – By Mr. Jigar Trivedi, Senior Research Analyst at Indusind Securities

(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing.)

(સ્પષ્ટતા: અત્રેથી આપવામાં આવતી તમામ પ્રકારની માહિતી કોઇપણ પ્રકારે રોકાણ/ ટ્રેડીંગ માટેની સલાહ નથી. બજારોમાં રોકાણ જોખમોને આધીન છે અને રોકાણ કરતા પહેલા કૃપા કરીને તમારા સલાહકારની સલાહ લો.)