TD Securitiesâ Bart Melek, in a recent interview with Kitco NEWS, stated that the Trump administration’s tariffs might significantly influence the prices of precious metals, but the effects may not be as straightforward as most anticipate.
According to Melek, the initial perception is that higher tariffs on imported goods would translate to higher inflation, which would consequently reflect positively on gold prices. However,
he also suggested a more complex dynamic that might play out. Should the tariffs ignite a trade war resulting in a global slowdown, investors may flock to the US dollar as a safe-haven asset, which could conceivably depress gold prices.
While the impact on gold is uncertain, Melek raised the possibility of other precious metals like silver and palladium encountering strong buying pressure as their supply chains could be disrupted by the tariffs. Read More
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