Gold hits a new record high after the US sets tariffs on imports of gold bars. All eyes this week are on an expected rate cut in Australia tomorrow, and US inflation data tomorrow night.
In our Deep Dive interview, ANZ Head of Australian Economics Adam Boyton goes hunting for the neutral interest rate.
5 things to know in 5 minutes:
The US announced on Friday it would put tariffs on imports of 1kg and 100oz gold bars, which pushed up the gold price to a new record high US$3,534/oz. Switzerland faces a 39% tariff on its previously big exports of gold bars to the US. ANZ Group Chief Economist Richard Yetsenga says ongoing uncertainty about tariffs continues to dominate.
Richard says India’s 50% tariff rate may be linked to a lack of US Treasury buying.
ANZ Head of FX strategy Mahjabeen Zaman says dovish comments around an expected cut in the cash rate tomorrow by the Reserve Bank of Australia would weigh on the Aussie dollar.
Mahjabeen says currency markets have also been focused on Donald Trump’s appointment of controversial official Stephen Miran to a vacant seat on the Federal Reserve.
ANZ’s Senior International Economist Tom Kenny is watching for signs of higher tariffs filtering through the US inflation data due on Tuesday night.
Cheers,
Bernard.
PS: Catch you you tomorrow with a closer preview of the RBA’s expected rate cut.
