South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Asian Currencies Trade Sideways as Dollar Stabilizes, Yen Weakens Ahead of Japan Election 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Australia’s Corporate Regulator Urges Pension Funds to Boost Technology Investment as Industry Grows 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
Gold prices surged past $2,900 per ounce for the first time this week, driven by escalating trade tensions after President Donald Trump hinted at a 25% tariff on all US steel and aluminum imports.
Despite this record-breaking rally, Joe Maher, assistant economist at Capital Economics, warns that gold's momentum might not last. Precious metals have performed exceptionally well in 2025, even without support from typical drivers like the US dollar and real yields. The usual inverse correlation between gold prices and the 10-year US TIPS yield has weakened, with investors seeking gold as a hedge against potential trade wars.
Fears of gold being caught in trade disputes may have prompted US investors to stockpile the metal, particularly on the Comex exchange. Central banks have also increased gold purchases, potentially to reduce exposure to US sanctions, especially after $300 billion of Russian reserves were frozen following the Ukraine invasion.
Additionally, the large US fiscal deficit and Trump's remarks on national debt may be eroding reserve managers' confidence. Robust demand from China’s central bank and private investors seeking stable assets has further fueled gold’s rise.
While non-traditional drivers may continue to support gold prices in the short term, Capital Economics predicts that central bank diversification will be gradual. The high price may deter some investors, and expected rises in long-term US Treasury yields could push gold prices down to $2,750 by the end of 2025.
