Gold has marked another record as physical gold becomes the go-to for investors concerned over the continued fallout of US President Donald Trump’s tariff offensive.
The precious metal climbed a further 0.4% overnight (AEDT) to around US$2,882 ($4,586) an ounce.
ANZ Head of Australian Economics Adam Boyton says the scramble for physical deliveries has caused a week-long queue to withdraw metal from the Bank of England’s vaults, a key lender to the industry.
“Gold in its vault is trading at a discount of more than US$5/oz below spot to the wider market,” he says.
“One month lease rates have jumped to about 4.7%.
“Traders remain concerned that the US may place tariffs on precious metal imports into the US following President Trump’s recent moves against Canada, Mexico and China.”
Meanwhile, the S&P/ASX 200 lifted 74.8 points, or 0.89%, to 8,491.7 points. The index is virtually unchanged over the past five days, but is around 0.88% below its 52-week high.
Eight of the 11 sectors are higher today. Utilities is the best performing sector, gaining 0.47% on Thursday (6 February) and rebounding from its recent decline. However, the sector is down 5.21% for the past five days.
Industrials advanced 0.05%, materials dropped 0.3% and energy edged 0.02% lower.
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & PMT Refinery
