Gold prices hit record highs this week amid global uncertainty caused by Trump’s proposed tariffs on Europe. Equities were mixed on Wednesday following a rough start to the week, fuelled by Donald Trump’s Greenland-linked tariff threats, while the uncertainty rattling through trading floors saw safe-haven precious metals hit fresh record highs. In South Africa, the focus is on local CPI data due later in the day, which will help shape expectations ahead of the upcoming SARB rate decision, said Bianca Botes, Director at Citadel Global.
The rand weakened on Tuesday, but has since stabilised near the middle of its recent range against the dollar. It started the day at R16.40 to the US dollar and R19.20 to the euro. Japanese bond yields also settled back following Tuesday’s surge on the back of a pledge by Prime Minister Sanae Takaichi to cut taxes.
The US president injected a fresh dose of volatility into markets Saturday after threatening to hit several European countries — including France, Germany, Britain and Denmark — with up to 25 percent tariffs over their opposition to his takeover of Greenland. The move has sparked a warning of retaliation, with French President Emmanuel Macron raising the possibility of deploying an unused, powerful instrument aimed at deterring economic coercion. Speaking at the Davos gathering in Switzerland, European Union chief Ursula von der Leyen warned Washington that hitting allied nations with punitive tariffs over Greenland would be a “mistake”.
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In response, US Treasury chief Scott Bessent said Monday that any retaliatory EU tariffs would be “unwise”. Markets have sunk globally this week, and Wall Street’s three main indexes tanked on Tuesday as they reopened after a long weekend. On Wednesday, Tokyo, Sydney, Singapore, Taipei, Wellington, Mumbai and Manila fell, while Hong Kong, Shanghai, Seoul, Bangkok and Jakarta rose.
Wall Street futures advanced. London barely moved at the open, while Paris and Frankfurt dipped. However, concerns that the Greenland crisis could grow saw precious metals — a go-to in times of turmoil — continue to hit new peaks.
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