Will Comex gold face import tariffs?

Rumours that Trump will introduce 10% tariffs on precious metals are said to be driving gold higher. This report gives a more likely explanation.

For the last two weeks before and after President Trump’s inauguration on 20 January, gold has recovered to almost new highs in dollars. In European trade this morning, gold was trading at $2774, up $73 on the week and silver was $30.85, up 53 cents for a gold/silver ratio of nearly 90 times. Comex volumes were generally healthy, with the exception of high volumes on Tuesday following Monday’s closure for Inauguration Day.

Comex Open Interest in gold has increased sharply towards overbought levels, while silver’s OI has only just begun to reflect more buying as shown in our next two charts respectively.

It is worth showing these charts together to demonstrate how gold’s OI has soared, while silver’s increase has been more subdued. The question which we need to address is what has been driving gold and not silver.